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AUTHOR(S): Oyetola Odewusi, Mayowa David Olalere, Ahannaya, Chinedu Gandolph, Oyetunji Oluwayomi Taiwo
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TITLE Sustainability Reporting: A Panacea to Corporate Earnings Management in The 21st Century |
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ABSTRACT The use of sustainability reporting in the financial report preparation process is a result of firms' increased concern to meet their demands without compromising future needs. Nigeria is not an exception to the global problem with corporate accounting information disclosure practices, as evidenced by a number of banking sector failures. This has caused the financial reporting's integrity to suffer. This study looked at how listed Deposit Money Banks (DMBs) in Nigeria managed their corporate earnings in relation to sustainability reporting. The study adopted the ex post facto research design. The study's population comprises fourteen (14) Nigerian Deposit Money Banks that are listed. Purposive sampling technique was used to choose ten (10) deposit money banks as the sample size. Data were taken from CBN Statistical Bulletins and audited reports of the sampled deposit money banks. Both descriptive and inferential statistics were used to analyze the data. The results showed that, for discretionary accruals and abnormal production costs, respectively, Sustainability Reporting had a significant effect (Adj R2 = 0.43, F-Stat (5, 95) = 668.67, p < 0.05); (Adj R2 = 0.46, F-Stat (5, 95) = 51.72, p < 0.05). The study came to the conclusion that corporate earnings management of deposit money banks listed in Nigeria is greatly impacted by sustainability reporting. The study recommended that in order to reduce earnings management, management should strictly enforce compliance with sustainability reporting, particularly with regard to economic sustainability reporting, which has a positive link with discretionary accruals. |
KEYWORDS Abnormal production cost, Corporate accounting information, Discretionary accruals, Earnings management, Economic sustainability reporting, Sustainability Reporting |
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Cite this paper Oyetola Odewusi, Mayowa David Olalere, Ahannaya, Chinedu Gandolph, Oyetunji Oluwayomi Taiwo. (2025) Sustainability Reporting: A Panacea to Corporate Earnings Management in The 21st Century. International Journal of Economics and Management Systems, 10, 426-440 |
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