IMPACT OF REAL EARNING MANAGEMENT ON FIRM VALUE OF LISTED OIL AND GAS COMPANIES IN NIGERIA

ABSTRACT The study examined the impact of real earnings management on firm value of listed oil and gas companies in Nigeria. Data from the annual accounts of the eight (8) firms out of the twelve (12) listed oil and gas firms on the Nigerian Exchange Group (NGX) for a period of thirteen (13) years 2010 to 2022 was extracted. The study employed descriptive statistics, correlation analysis and regression analysis to arrive at the findings. The study found that discretionary expenses have a positive significant impact on firm value, discretionary production and discretionary cash flow from operation has a positive insignificant impact on firm value of listed oil and gas companies in Nigeria. Discretionary expenditures boost competitiveness and have a favorable effect on investor confidence. This positive impact can signal adept management of challenges unique to the industry, where decisions regarding discretionary spending are crucial for ensuring long-term sustainability and value generation. The study therefore recommended that oil and gas firms in Nigeria should maintain their focus on making strategic spending choices a priority. It is further essential to thoroughly examine which particular areas of optional expenditures are most beneficial in enhancing the company's value. By conducting such an analysis, companies can refine their resource allocation strategies, directing investments towards areas that significantly enhance competitiveness and ensure long-term sustainability.