Impact of Monitoring Mechanisms on Opportunistic Accounting of Listed Industrial Goods Firms in Nigeria

Yakubu Umar, Isah Faruk, Abdullahi Bande Yabo, Zubairu Ahmad Alh

Abstract


This paper aims to investigate the effect of monitoring mechanisms on opportunistic accounting of listed industrial goods firms in Nigeria. Correlation research design is used in this study, whereas the sample consists of 12 companies listed on the Nigerian Stock Exchange for the period from 2011 to 2015. Multiple regressions is adopted as a technique of a data analysis. The empirical research shows that managers of the companies would engage in opportunistic accounting when the company is financially healthy and its profit is high. Therefore the study recommended that the management of listed industrial goods firms in Nigeria should proper utilization of free cash flows on profitable investments and increase the amount use to pay auditors.


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