Effect of Real Earnings Management on Firm Value of listed Consumer Goods Companies in Nigeria
This study examines the effect of real earnings management on the firm value of listed consumer goods companies in Nigeria. From a population of 21 firms, a sample of 13 companies was selected, with data collected over a 12 year period from 2012 to 2023. The data were analyzed using regression techniques. The study found that abnormal production costs have a negative but insignificant effect on firm value, while abnormal operating cash flows exert a positive but insignificant effect. In contrast, abnormal discretionary expenses show a positive and statistically significant effect on firm value. The study concluded that REM overall exerts a positive influence on the firm value of listed consumer goods companies in Nigeria. However, given the potential long term consequences, the study recommends that firms should prioritize sustainable operational strategies that enhance firm value rather than relying excessively on REM practices, whose short term benefits may undermine long term performance. Keywords: Abnormal cash flow, abnormal production cost, abnormal expenses, firm value and consumer goods companies
Keywords: Firm Value, Real Earnings Management and Consumer Goods Companies
Citation: Orban, M.J., Lorpev, L., Aondoakaa, K. & Kutse, G.T. (2026). Effect of Real Earnings Management on Firm Value of listed Consumer Goods Companies in Nigeria. International Journal of Innovative Research in Accounting and Sustainability, 11(1), 1-11.