Firm Attributes and Real Activity Manipulation among Public Industrial Companies in Nigeria

  • Dr. Samson Oyewole Olabisi Department Of Accounting, Adekunle Ajasin University, Akungba Akoko
  • Elijah Oladeji Oladutire Department Of Accounting, Adekunle Ajasin University, Akungba Akoko
DOI: https://doi.org/10.51699/cajitmf.v4i9.605
Keywords: Real Activity Manipulation, Capital Intensity, Company Largeness, Profitability

Abstract

Evidences have shown that real activity manipulation (RAM) is an endemic problem present in both developing and developed countries. Most importantly, the influence of corporate attributes upon RAM cannot be over-emphasized. Therefore, this study evaluated the effect of corporate attributes on RAM. The study employed ex-post facto research design, collecting published facts of figures from the financial statements of 56 purposively selected public Nigerian non-financial companies (NFC). The published data obtained were subjected to panel data regression. The outcomes of this investigation showed thus: capital intensity exhibited increasing and cogent influence upon RAM of public Nigerian NFC (coefficient = 0.7919, t-value = 6.5300, and p-value < 0.05); company largeness influence on RAM of public Nigerian NFC was favourable and not cogent (coefficient = 0.0115, t-value = 0.5072, and p-value > 0.05); and profitability had decreasing and cogent influence upon RAM of public Nigerian NFC (coefficient = -0.8494, t-value = -5.0709, and p-value < 0.05). The study concluded that firm attributes systematically affected the RAM of the sampled firms in Nigeria. Therefore, the investigation advised that firms should manage their profitability and leverage so as to reduce pressure on retained earnings.

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Published
2023-09-24
How to Cite
Dr. Samson Oyewole Olabisi, & Elijah Oladeji Oladutire. (2023). Firm Attributes and Real Activity Manipulation among Public Industrial Companies in Nigeria. Central Asian Journal of Innovations on Tourism Management and Finance, 4(9), 136-149. https://doi.org/10.51699/cajitmf.v4i9.605
Issue
Vol. 4 No. 9 (2023): September 2023
Section
Articles

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