BibTex Citation Data :
@article{JAB28576, author = {Temitope Fagbemi and Olubunmi Osemene and Oyinlade Agbaje}, title = {Management Entrenchment, Firm Characteristics and Earnings Management Of Conglomerate Companies In Nigeria}, journal = {Jurnal Administrasi Bisnis}, volume = {9}, number = {1}, year = {2020}, keywords = {Entrenchment; managerial behaviour; earnings management; discretionary accruals; conglomerates}, abstract = { Sometimes the rivalry between shareholders and management is an indication of the level of entrenchment within the corporate environment. Managers are believed to routinely manipulate earnings in order to mislead shareholders about their company's actual economic outlook or performance. As a result, the study investigated the impact of managerial entrenchment, firm characteristics and earnings management of conglomerate companies in Nigeria. Employing the ex-post facto research design, the data was gathered from secondary source of the 6 listed conglomerate companies for the 11-year period running (2008-2018). The study used discretionary accruals a proxy for earnings management and to calculate discretionary accruals, the study used modified Jones model. The result showed that management entrenchment and firm characteristics have Impact on multinational firms ' earnings management in Nigeria. Specifically, from the conglomerate’s entrenchment proxies, CEO’s tenure has a positive and significant impact on earnings management (coff. =1.062821, p-value =0.0367) and management entrenchment as measured by CEO’s shareholding has a negative and insignificant effect on earnings management (coff. =-6252391, p-value = 0.4090) while firm size, profitability and leverage indicated a significant and positive impact on earnings management (coff, = 0.124587, p-value = 0.0000; coff. = 0.006647, p-value = 0.0431 and coff. = 0.032065, p-value = 0.0000). The study therefore recommended among others that management should reduce the debt in their capital structure in order to improve their companies’ value and their capital structure should be majorly financed by equity rather than debt and reduce CEOs tenure to minimise earnings management practices. }, issn = {2548-4923}, pages = {1--14} doi = {10.14710/jab.v9i1.28576}, url = {https://ejournal.undip.ac.id/index.php/janis/article/view/28576} }
Refworks Citation Data :
Sometimes the rivalry between shareholders and management is an indication of the level of entrenchment within the corporate environment. Managers are believed to routinely manipulate earnings in order to mislead shareholders about their company's actual economic outlook or performance. As a result, the study investigated the impact of managerial entrenchment, firm characteristics and earnings management of conglomerate companies in Nigeria. Employing the ex-post facto research design, the data was gathered from secondary source of the 6 listed conglomerate companies for the 11-year period running (2008-2018). The study used discretionary accruals a proxy for earnings management and to calculate discretionary accruals, the study used modified Jones model. The result showed that management entrenchment and firm characteristics have Impact on multinational firms ' earnings management in Nigeria. Specifically, from the conglomerate’s entrenchment proxies, CEO’s tenure has a positive and significant impact on earnings management (coff. =1.062821, p-value =0.0367) and management entrenchment as measured by CEO’s shareholding has a negative and insignificant effect on earnings management (coff. =-6252391, p-value = 0.4090) while firm size, profitability and leverage indicated a significant and positive impact on earnings management (coff, = 0.124587, p-value = 0.0000; coff. = 0.006647, p-value = 0.0431 and coff. = 0.032065, p-value = 0.0000). The study therefore recommended among others that management should reduce the debt in their capital structure in order to improve their companies’ value and their capital structure should be majorly financed by equity rather than debt and reduce CEOs tenure to minimise earnings management practices.
Article Metrics:
Last update:
Do institutional framework and its threshold matter in the sensitivity of CEO pay to firm performance? Fresh insights from an emerging market economy
Strategic turnaround: unraveling the impact of CEO power on firm performance during retrenchment
Last update: 2024-12-03 12:50:02
Starting from 2022, the author(s) whose article is published in the Jurnal Administrasi Bisnis (JAB) attain the copyright for their article and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-ShareAlike 4.0 International License. By submitting the manuscript to JAB, the author(s) agree with this policy. No special document approval is required.
The author(s) guarantee that:
The author(s) retain all rights to the published work, such as (but not limited to) the following rights:
Suppose the article was prepared jointly by more than one author. Each author submitting the manuscript warrants that all co-authors have given their permission to agree to copyright and license notices (agreements) on their behalf and notify co-authors of the terms of this policy. Jurnal Administrasi Bisnis (JAB) will not be held responsible for anything that may arise because of the writer's internal dispute. Jurnal Administrasi Bisnis (JAB) will only communicate with correspondence authors.
Authors should also understand that their articles (and any additional files, including data sets, and analysis/computation data) will become publicly available once published. The license of published articles (and additional data) will be governed by a Creative Commons Attribution-ShareAlike 4.0 International License. Jurnal Administrasi Bisnis (JAB) allows users to copy, distribute, display and perform work under license. Users need to attribute the author(s) and Jurnal Administrasi Bisnis (JAB) to distribute works in journals and other publication media. Unless otherwise stated, the author(s) is a public entity as soon as the article is published.
Jurnal Administrasi Bisnis oleh http://ejournal.undip.ac.id/index.php/janis/ disebarluaskan di bawah Lisensi Creative Commons Atribusi-BerbagiSerupa 4.0 Internasional.
Lihat Pengunjung
