EARNINGS MANAGEMENT INDICATORS AND FINANCIAL REPORTING QUALITY: EVIDENCE FROM QUOTED HEALTHCARE FIRMS IN NIGERIA

This study evaluated the relationship that exists between earning management and financial reporting quality of healthcare firms listed in Nigeria Exchange Group. Specifically, the study examined the effect of accrual based earnings management and real earnings management on financial reporting quality. The study adopted the ex post facto research design. The population of the study consists of 8 quoted healthcare and 5 agriculture companies listed on the floor of the Nigerian Exchange Group as at 2015 to 2024 for ten (10) years period. A key finding of the study is that most forms of earnings management analyzed do not significantly affect the timeliness of financial reporting. The study also found that firm size, used as a control variable, did not significantly affect disclosure timeliness across the models. This suggests that differences in reporting speed are largely unrelated to firm size in this context and that managerial decision and sector-specific factors play a more significant role. The lack of significant effects from most earnings management proxies on timeliness underscores the complexity of financial reporting quality and suggests that timeliness may be only one dimension influenced by earnings manipulation. Hence, regulators and policymakers should consider strengthening mandatory financial disclosure requirements to ensure timely and transparent reporting. Lastly, firms themselves should undertake initiatives aimed at enhancing internal controls and financial reporting processes that minimize managerial discretion in disclosure timing