EARNINGS MANAGEMENT AND FINANCIAL PERFORMANCE OF QUOTED OIL AND GAS COMPANIES IN NIGERIA

Abstract

 This research explored how earnings management impacts Nigerian oil and gas firm’s financial performance from 2005 to 2020. Seven out of the total ten oil and gas firms in Nigeria were selected for analysis. The research employed panel regression and descriptive statistics to evaluate the data. The outcome revealed a favourable connection between earnings management, measured by changes in net income/change in cash flow and discretionary accruals of (7.322, 2.634) and P-values of (0.000, 0.009) <0.05 on return on asset. This concludes that earnings management significantly influences the financial performance of the selected oil and gas companies. The research suggests that transparent financial reporting is crucial, and companies should prioritize sustainable value creation over short-term financial metrics.