For correspondence:-
Received: July 15, 2020 Accepted: August 25, 2020 Published: September 30, 2020
Citation: Corporate Attributes and Earnings Quality: The Moderating Effect of Corporate Age. Account Tax Rev 2005; 4(3):1-10 doi:
© 2005 The authors.
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Abstract
It has been argued that corporate age is more than a surrogate that only serves as a control variable, and thus, thedebate between young and old firms in itself requires a revision.Therefore, this study provides a unique finding of the influence of corporate age diversity on the relationship between corporate attributes and earnings quality of listed companies in Nigeria. The study employs 616 firm-year observations for the period of 2012 to 2018. The data for the study are extracted from the annual reports of the listed firms and Thompson Reuters DataStream. Accruals model developed by Collins et al. (2017) is used as a proxy for earnings quality. A robust model is used to estimate the primary model of the study. The study documents that corporate sizeis less likely to reduce earnings manipulation than larger firms. It also reveals thatcorporate leverage, corporate board expertiseand corporate age plays a crucial role in preventing earnings manipulation. The study also shows that corporate age moderates the negative relationship between corporate growth and earnings quality of listed companies in Nigeria. This suggests that older firms are more manured, and thus, they are more likely to protect their reputational capital than younger firms.
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