AN EMPIRICAL STUDY ON THE RELATIONSHIP BETWEEN EARNINGS MANAGEMENT AND DIVIDEND POLICY IN NIGERIAN DIVERSIFIED CONGLOMERATE COMPANIES

Abstract

This study aims to investigate the impact of earnings management on dividend policy in Nigerian diversified conglomerate companies. Earnings management is the manipulation of earnings through the use of accounting choices and discretionary accruals. The study employs a correlational research design and gathers secondary data from annual reports and accounts between 2008 and 2017. Panel regression analysis is employed to analyze the data collected. The results indicate that earnings management significantly and negatively affects the dividend policy of Nigerian diversified conglomerate companies. The study provides noteworthy policy recommendations for regulators, investors, and shareholders. This research contributes to the existing literature on earnings management and its effect on dividend policy in Nigerian diversified conglomerate companies