Effect of Ownership Structure on Earnings Management for Quoted Firms in Nigeria

The study examines the effect of ownership structure on earnings management for quoted firms in Nigeria. The specific objectives include to: Determine the impact of ownership concentration on discretionary accruals of Nigerian quoted firms. and Examine the effect of ownership concentration on non-discretionary accruals of Nigerian quoted firms. ex-post facto research design was adopted. Data were analyzed using panel least squares (panel data technique) and Eviews9.0. The study revealed that ownership concentration did not have a significant effect on DAA (discretionary accrual adjustment) of Nigerian quoted firms. This is evidenced by the t-statistics of 0.027440 < 2 and probability value of 0.9782> 0.05 and not significant at 5%. While Ownership concentration did not have a significant effect on NDAA (non-discretionary accrual adjustment) of Nigerian quoted firms. This is evidenced by the t-statistics of 0.673147 and the corresponding probability value of 0.5028 > 0.05 and not significant at 5%. The study concluded that ownership concentration did not have a significant effect on DAA (discretionary accrual adjustment), NDAA (non-discretionary accrual adjustment). Recommendation, Managers should be encouraged to have more interest through shares in the organization as it enables them to have more sense of belonging in the firm. This might in turn may help mitigate management opportunistic tendencies. Firms should accrue only what is necessary in non-current assets, and this should be objectively reviewed by external auditing. This is because non-discretionary accruals are hardly used in earnings management.