| Title | Real earnings management in related party transactions: does sustainable development triangle (SDT) matters for business innovation in Nigeria? |
|---|---|
| ID_Doc | 78335 |
| Authors | Salihi, AA; Ibrahim, H; Baharudin, DM |
| Title | Real earnings management in related party transactions: does sustainable development triangle (SDT) matters for business innovation in Nigeria? |
| Year | 2023 |
| Published | |
| Abstract | PurposeThe study aims to examine the association between the sustainable development triangle and real earnings management (REM) and the moderating role of business innovation. Design/methodology/approachThe study was based on the quadruple bottom line approach to measuring corporate sustainable development. For the REM, Roychowdhury model is used to identify the practices. The study used panel data using 740 firm-year observations from non-financial listed companies in the Nigerian market from 2011 to 2020, collected from the Nigeria Stock Exchange. FindingsThe study finds a negative influence on the association of economic, environmental, social and governance (EESG) on REM in related party transactions. Thus, by regressing the three different components of REM separately, then EESG will have strongest impact as well. The study suggests a bidirectional association between EESG and REM. Furthermore, the study finds that business innovation strengthens the negative association between EESG and REM. The study concludes that sustainable companies in the Nigerian public market are less liable to practice REM. Research limitations/implicationsThe study examines only non-financial listed companies quoted on the Nigeria Stock Exchange, which restricts the generalization of the findings. Practical implicationsThe findings of the study should be of immense value to the investors who need comprehensive appraisal of earnings quality to enhance sustainable development strategies for sustainable business innovation among Nigeria firms. Thus, sustainability and innovation can serve as the principles for supporting developing countries impacted by the COVID-19 pandemic and supporting a sustainable development. Social implicationsThe study will be of immense value to policymakers, regulators and standard setters who demand for facts insightful of business practices and reporting behaviors for sustainable development. Originality/valueExisting studies have mainly focused on triple bottom line. This study adds to the existing body of literature on the Quadruple bottom line in an African market. More so, the study investigates the impact of business innovation on the relationship between economic, environmental, social and governance and real earnings management, which was rarely investigated in the prior literature. |
Similar Articles
| ID | Score | Article |
|---|---|---|
76699
|
Nguyen, LTX The relationship between corporate sustainability performance and earnings management: evidence from emerging East Asian economies(2024)Journal Of Financial Reporting And Accounting, 22, 3 | |
| 77696
|
Erin, OA; Bamigboye, OA; Oyewo, B Sustainable development goals (SDG) reporting: an analysis of disclosure(2022)Journal Of Accounting In Emerging Economies, 12, 5 | |
| 70995
|
Paunica, M; Opris, VN; Opris, ME; Tanase, GL Financial performance improvement through sustainable development(2017) | |
| 67921
|
Ahmed, MMA The relationship between corporate governance mechanisms and integrated reporting practices and their impact on sustainable development goals: evidence from South Africa(2023)Meditari Accountancy Research, 31, 6 | |
| 73633
|
Nogueira, E; Gomes, S; Lopes, JM Financial Sustainability: Exploring the Influence of the Triple Bottom Line Economic Dimension on Firm Performance(2024)Sustainability, 16, 15 | |
| 66543
|
Oyewo, B; Tawiah, V; Hussain, ST Drivers of environmental and social sustainability accounting practices in Nigeria: a corporate governance perspective(2023)Corporate Governance-The International Journal Of Business In Society, 23, 2 |