Real earnings management in related party transactions: does sustainable development triangle (SDT) matters for business innovation in Nigeria?

A. Salihi, Haslindar Ibrahim, Dayana Mastura Baharudin
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Abstract

Purpose The 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/approach The 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. Findings The 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/implications The study examines only non-financial listed companies quoted on the Nigeria Stock Exchange, which restricts the generalization of the findings. Practical implications The 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 implications The 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/value Existing 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.
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关联交易中的真实盈余管理:可持续发展三角(SDT)对尼日利亚商业创新有影响吗?
目的研究可持续发展三角与实际盈余管理(REM)之间的关系以及企业创新的调节作用。设计/方法论/方法本研究基于衡量企业可持续发展的四重底线方法。对于REM,Roychowdhury模型用于确定实践。该研究使用了从尼日利亚证券交易所收集的2011年至2020年尼日利亚市场非金融上市公司的740个公司年度观察结果的面板数据。研究发现,在关联方交易中,经济、环境、社会和治理(EESG)对REM的影响是负面的。因此,通过分别回归REM的三个不同组成部分,EESG也将产生最强的影响。研究表明,EESG与REM之间存在双向关联。此外,研究发现,商业创新强化了EESG与REM.之间的负关联。该研究得出的结论是,尼日利亚公开市场上的可持续发展公司不太容易实施REM.研究局限性/含义该研究只考察了尼日利亚证券交易所上市的非金融上市公司,这限制了研究结果的推广。实际意义该研究的结果对投资者来说应该具有巨大价值,他们需要对收益质量进行全面评估,以加强尼日利亚公司可持续商业创新的可持续发展战略。因此,可持续性和创新可以作为支持受新冠肺炎疫情影响的发展中国家和支持可持续发展的原则。社会影响这项研究将对政策制定者、监管机构和标准制定者具有巨大价值,他们要求了解有助于可持续发展的商业实践和报告行为的事实。原创性/价值现有的研究主要集中在三重底线上。这项研究补充了现有的关于非洲市场四倍利润的文献。更重要的是,该研究调查了商业创新对经济、环境、社会和治理与实际盈余管理之间关系的影响,这在以前的文献中很少进行调查。
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来源期刊
CiteScore
6.30
自引率
10.30%
发文量
32
期刊介绍: The International Journal of Innovation Science publishes fundamental and applied research in innovation practices. As the official journal of the International Association of Innovation Professionals (IAOIP), the journal is a forum for the exchange of advanced knowledge in innovation, including emerging technologies and best practices, tools and techniques, metrics, and organization design and culture; as well as the stakeholder engagement, change management, and leadership skills required to ensure innovation succeeds. Areas of Coverage: -Innovation processes, methods, techniques- Individual''s role in Innovation- Improvements in HR, marketing, finance, or other disciplines that enable innovation- Innovation practices in specific industries or countries- Innovation centers, incubators, labs...- Regional or national economic development/policies related to innovation- Innovation competency, skills- Innovation conventions, competitions, or training- Innovation for entrepreneurs-Regional impacts on innovation- Growing innovationthrough university programs- Attracting innovative companies and entrepreneurs
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