Version 1
: Received: 2 September 2023 / Approved: 4 September 2023 / Online: 5 September 2023 (09:14:56 CEST)
How to cite:
Kamau, C.G. Earnings Management and Financial Distress among the Firms Listed at Nairobi Securities Exchange: Pre and Post Covid Analysis. Preprints2023, 2023090243. https://doi.org/10.20944/preprints202309.0243.v1
Kamau, C.G. Earnings Management and Financial Distress among the Firms Listed at Nairobi Securities Exchange: Pre and Post Covid Analysis. Preprints 2023, 2023090243. https://doi.org/10.20944/preprints202309.0243.v1
Kamau, C.G. Earnings Management and Financial Distress among the Firms Listed at Nairobi Securities Exchange: Pre and Post Covid Analysis. Preprints2023, 2023090243. https://doi.org/10.20944/preprints202309.0243.v1
APA Style
Kamau, C.G. (2023). <strong>Earnings Management and Financial Distress among the Firms Listed at Nairobi Securities Exchange: Pre and Post Covid Analysis</strong>. Preprints. https://doi.org/10.20944/preprints202309.0243.v1
Chicago/Turabian Style
Kamau, C.G. 2023 "<strong>Earnings Management and Financial Distress among the Firms Listed at Nairobi Securities Exchange: Pre and Post Covid Analysis</strong>" Preprints. https://doi.org/10.20944/preprints202309.0243.v1
Abstract
Earnings management and financial distress are two critical facets of financial management in corporations that have lately been the focus of thorough research from both scholars and practitioners. The purpose of the research is to evaluate the influence of financial distress on the earnings management of companies listed at the NSE during the pre- and post-COVID eras. Multiple linear regression was applied in this study to examine the causal association between earnings management and financial distress. To assess the effect of financial distress on earnings management, the study analyzed data from 37 listed companies during the pre-COVID and post-COVID periods. The methodology also takes into account control factors like firm size, GDP, and inflation. The pre-COVID research indicates a significant positive correlation between financial strain and earnings management. In contrast, the correlation between financial distress and earnings management is not statistically significant in the post-COVID analysis. However, research shows that firm size has a statistically significant negative influence on managing earnings. The results of this study show that smaller firms are more inclined to engage in earnings management during the post-COVID era than bigger ones.
Business, Economics and Management, Accounting and Taxation
Copyright:
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
