THE ROLE OF DEPRECIATION TAX SHIELD IN SHAPING EARNINGS MANAGEMENT PRACTICES OF NIGERIAN BANKS

This study determined the effect of corporate tax shield of depreciation on earnings management of deposit money banks in Nigeria. Ex Post Facto research design was adopted for the study. Data were extracted from the sampled thirteen banks in Nigeria from 2013 to 2023. Regression analysis was employed to test the hypothesis; the study revealed that depreciation has a significant effect on earnings management of deposit money banks in Nigeria at 5% level of significance. Conclusively, the findings indicated that tax shield of depreciation has significant effect on earning management in Nigeria. Based on the findings, the study recommended that tax authorities should ensure that depreciation to be deducted must be associated with an asset used in a business or income-generating activity, and have an expected lifespan of more than one year