Firm Attributes and Discretionary Accruals (Dac) of Public Nigerian Non-Financial Corporate Businesses

Abstract

Evidences have shown that DAC is an endemic problem present in both developing and developed countries. Most importantly, the influence of corporate attributes upon DAC cannot be over-emphasized. Therefore, this study evaluated the effect of corporate attributes on DAC. The study employed ex-post facto research design, collecting published facts of figures from the financial statements of 56 purposively selected public Nigerian non-financial companies (NFC). The published data obtained were subjected to panel data regression. The outcomes of this investigation showed thus: capital intensity exhibited increasing and cogent influence upon DAC of public Nigerian NFC (coefficient = 0.2746, t-value = 4.3942, and p-value < 0.05); company largeness influence on DAC of public Nigerian NFC was adverse and cogent (coefficient = -0.1223, t-value = -10.4249, and p-value < 0.05); and profitability had increasing and cogent influence upon DAC of public Nigerian NFC (coefficient = 0.3660, t-value = 4.2335, and p-value < 0.05). The study concluded that firm attributes systematically affected the DAC of the sampled firms in Nigeria. Therefore, the investigation advised that firms should manage their leverage so as to reduce pressure on retained earnings.