International Financial Reporting Standards (IFRS) On Earnings Management of Listed Banks Financial Firms in Nigeria

• Author(s): Mustapha Isah; Ibrahim Margaret Ojoh; Lawan Garba
• Paper ID: 1713556
• Page: 1153-1166
• Published Date: 16-01-2026
• Published In: Iconic Research And Engineering Journals
• Publisher: IRE Journals
• e-ISSN: 2456-8880
• Volume/Issue: Volume 9 Issue 7 January-2026

Abstract

This study examines the International Financial Reporting Standards (IFRS) on earnings management practices of listed financial services firms in Nigeria. The research focuses on three key dimensions of earnings management: discretionary accruals. IFRS adoption was assessed through proxies such as transparency, disclosure quality, and comparability of financial statements. Secondary data were collected from the published annual reports of five purposively selected deposit money (commercial) banks listed on the Nigerian Exchange Group (NGX) covering the period 2020?2024. Descriptive statistics and panel regression analysis were employed, with diagnostic tests conducted to ensure the robustness of the models. The findings reveal that IFRS adoption significantly reduces the extent of earnings management by enhancing the quality of financial reporting and constraining managerial opportunism. Specifically, transparency, disclosure quality, and comparability were shown to have a significant effect in mitigating both accrual-based and real earnings manipulation. The results are consistent with prior empirical evidence, supporting the view that IFRS adoption enhances accounting quality in emerging economies. Based on these findings, the study recommends stronger regulatory enforcement of IFRS compliance, enhancement of disclosure practices, and continuous professional training for financial managers and auditors. This research contributes to the growing literature on accounting harmonization by providing fresh evidence from Nigeria, thereby offering insights for policymakers, regulators, and investors concerned with improving financial reporting quality and corporate accountability.

Keywords

International Financial Reporting Standards, Earnings Management, Banks Financial, Listed Firms, Nigeria.

Citations

IRE Journals:
Mustapha Isah, Ibrahim Margaret Ojoh, Lawan Garba "International Financial Reporting Standards (IFRS) On Earnings Management of Listed Banks Financial Firms in Nigeria" Iconic Research And Engineering Journals Volume 9 Issue 7 2026 Page 1153-1166

IEEE:
Mustapha Isah, Ibrahim Margaret Ojoh, Lawan Garba "International Financial Reporting Standards (IFRS) On Earnings Management of Listed Banks Financial Firms in Nigeria" Iconic Research And Engineering Journals, 9(7)