Corporate Social Responsibility and Earnings Management in the Nigerian Listed Industrial Goods Companies

  • Kabiru Isa Dandago BUK
  • Ibrahim Aliyu Gololo BSU
Keywords: Corporate Social Responsibility, Earnings Management, Nigeria, Industrial Goods Companies.

Abstract

There is continuous pressure on companies to be more responsible in their activities to the environment. Companies' engagement in socially responsible projects by companies demonstrates their concern for a society that goes beyond profit. This paper examined CSR and EM in the Nigerian listed industrial goods companies. The lack of studies in Nigeria motivates the researcher to bridge the gap. Secondary data for the period of 2009-2018 of the eleven (11) industrial goods companies listed on the floor of the stock exchange was utilized. A regression analysis technique was used to analyze the data. The finding reveals that EM has a significant and positive effect on the CSR of listed Nigerian industrial goods companies.  The study recommends that stakeholders, especially investors, creditors, and shareholders in the Nigerian listed industrial goods companies should give attention to the CSR practices of those companies as management might use that to cover up their manipulative practice. This would help them get insights and pay attention while taking decisions to grants loans on the expected transparency of earnings reported by those companies and should also pay adequate attention to the implementation of CSR projects by companies operating in the sector since the existence of EM practice is confirmed in the sector. Regulators like SEC, NSE, CBN and FRCN and auditors in Nigeria should put appropriate and proper measures in place for adequate scrutinization, examination, and evaluation of those companies for the detection of EM practice and finally, Accounting Standards like GAAP that give free hands to management to decide on the method of accounting policies should come up with definite restrictive methods on some accounting policies to constrain EM.

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Author Biographies

Kabiru Isa Dandago, BUK

Professor, Department of Accounting, Bayero University, Kano, Nigeria

Ibrahim Aliyu Gololo, BSU

Department of Accounting, Bauchi State University, Gadau, Bauchi State, Nigeria

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Published
2020-12-31
How to Cite
Dandago, K. I., & Gololo, I. A. (2020). Corporate Social Responsibility and Earnings Management in the Nigerian Listed Industrial Goods Companies. The Millennium University Journal , 5(1), 15-27. Retrieved from http://www.themillenniumuniversity.edu.bd/journal/index.php/TMUJ/article/view/32
Section
Research Articles