Earnings Management and Firm Performance of Quoted Insurance Companies in Nigeria by Odusina, A.O, Okunuga, K.S, Ojo, G.D & Lawal, R.A

Abstract

The study aimed to evaluate the impact of earnings management and firm performance in Nigeria on quoted insurance firms. It adopted the ex-post facto research design. Data for the study were sourced from the financials of the selected companies for the period of 2012-2021 and pooled OLS was adopted for the analysis. The study investigated how earnings management affects various financial ratios and the claims ratio in insurance firms. The results indicated that earnings management had a positive and significant impact on gross premium ratio (GPR), discretionary accruals (DAC), and asset turnover ratio (ATR). The study however recommended that empowering the Nigerian Accounting Standard Board (NASB) to develop a comprehensive and well-structured framework for accounting regulation. This framework would ensure compliance with relevant accounting standards such as GAAP, IFRS, CAMA, and other financial reporting guidelines.

Keywords

Earning Management, Gross Premium, Claim Ratio, Discretionary Accruals, and Asset Turnover ratio

Publication Information

Publication Type

Conference Paper

Conference Date

2024-07-10

Pages

16–29

ISBN

2645-2391

Publisher

AAPoly School of Management and Business Studies

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