EFFECT OF SELECTED CORPORATE CHARACTERISTICS AND EARNINGS MANAGEMENT OF LISTED INSURANCE COMPANIES IN NIGERIA

This study examines the impact of firm-specific attributes—firm size, leverage, and profitability— on earnings management among listed insurance companies in Nigeria. Adopting a longitudinal research design, the analysis spans a 10-year period (2014–2023) and utilizes panel data regression techniques. Earnings management is measured using discretionary accruals estimated through the Jones Model, while firm size, leverage, and profitability are represented by the natural logarithm of total assets, the debt-to-assets ratio, and return on assets (ROA), respectively. Findings reveal that firm size and profitability have a significant negative effect on earnings management, while leverage does not exhibit a statistically significant influence. Based on these results, the study recommends that the National Insurance Commission (NAICOM) enhance its monitoring of highly leveraged firms to ensure compliance with solvency requirements and mitigate earnings manipulation risks. Additionally, regulators should promote transparency in financial reporting, particularly for firms facing declining profitability, through stricter disclosure policies and enforcement measures.