Assessment of the nature and prevalence of real activity manipulation among Nigerian listed companies

The prevalence and nature of real activity manipulations (RAM) among 74 Nigerian listed companies are examined in this study for the years 2001–2014. The required data was found in the sampled firms' published annual reports. Three forms of RAM were examined in the study: production costs manipulation, discretionary expenses manipulation, and sales manipulation. Six estimating techniques were used to accomplish the study's objectives. The outcome demonstrates the frequency of each of the three manipulations studied among Nigerian listed companies, suggesting that during the research period, Nigerian listed companies participated in income-increasing manipulations. Consequently, among other things, it was suggested that corporate governance procedures be strengthened and that listing regulations and established corporate governance guidelines be followed. Additionally, it recommends that regulatory bodies and other regulatory agencies pay attention to RAM prevalence among listed firms in Nigeria. RAM practices are becoming more and more common among companies in emerging economies; therefore, this report is significant and appropriate. The nature and incidence of RAM in all sectors of Nigerian listed companies have not been examined in previous research conducted in the country.