Essay Example on Osisioma and Enahoro 2006 in their study tried to Find

Osisioma and Enahoro 2006 in their study tried to find out whether financial accounting information users like Company Managers Accountants Investment Analyst Investors etc in Nigeria are informed of earnings management in the Nigeria private sector They used structured questionnaire to get primary data they also used a survey analysis of a sample of 300 practicing accountants The research work showed that earnings management has significant effect on those information users This implied that the practice of earnings management benefits the manipulator of accounts This further shows that the genuinely positive aspect of the corporation is been presented to the fullest proportion to the public while the area of weakness is played down in the reports in anticipation of correcting the weakness The financial status is often boosted to enable the company to be attractive Furthermore Akindayomi 2012 studied Earnings Management and the Banking Crisis of the 1990s Evidence from Nigeria The researcher found that Nigeria banks has positive relationship between provisions for loan losses earnings before taxes and indicating earnings smoothing It also showed that healthy banks have smoother earnings than the distressed ones while distressed banks intentionally understate loan loss provisions to inflate earnings 

While Okolie in 2013 examined the effect and relationship between audit quality earnings management and earnings response coefficients of quoted companies in Nigeria The researcher documented evidences that are constant with the effects and relationship between audit quality and earnings management from the perspectives of discretionary accruals manipulations and the manipulations of real economic operations of companies listed on the Nigerian Stock Exchange He also extended the relationship between audit quality and earnings management to the effects and relationship between audit quality exerts on the earnings response coefficients as well as market prices per share of quoted companies in Nigeria A sample of 342 companies was used for the study year observations from the NSE for the fiscal years 2006 2011 while he used four of the commonly applied audit quality measures together a massive and all inclusive multivariate analysis was conducted It was revealed that audit quality is significant and negatively related to earnings management measured by discretionary accruals of quoted companies in Nigeria and that it also exerts significant relationship with real earnings management and that it also has significant effect on the earnings response coefficient and market price per share of quoted companies in Nigeria Aerts M in 2012 looked at Firm Tenure and Earnings Quality in the Netherlands He investigated the relationship between firm tenure and earnings quality for 380 Dutch publicly listed firms in an attempt to contribute to the recent debate about tenure length policies In the study Earnings quality was measured using discretionary accruals by way of the modified Jones model which was adjusted for performance The results showed that earnings quality does not change with firm tenure In this research work the relationship between firm tenure and earnings quality was examined in a non mandatory setting 

The research work added to current understanding of the impact of economic incentives on auditor independence by providing additional evidence that opportunities for auditors to earn client specific economic rents from repeat engagements can be a potential threat to auditor independence In addition this research work contributed to the current stream of research on the implications of mandatory audit firm rotation and informs policy makers in the current debate on improving auditor independence The research work shows additional evidence that under an audit regime similar to mandatory auditor rotation audit quality does appear to improve when the duration of the auditor client relationship is truncated