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Nigeria Journal of Management Sciences (NJMS), Benue State University
Effect of Accounting Estimates on the Profitability of Listed Firms in Nigeria
Nwarogu, Innocent Augustine (Ph.D): Department of Accounting, College of Management Sciences, Michael Okpara University of Agriculture Umudike, Umuahi, Abia State. (iannwarogu@yahoo.com)
Abstract
This study examined the effect of accounting estimates on the profitability of listed agricultural firms in Nigeria. The scope of the study in relation to time covers a period between 2010-2015. The study used ex post factor research design and the secondary data gathered were analyzed using regression analysis. The regression result shows there is a very strong relationship between (PEB,PBD) and PROF at 85.0%. It was further observed that there is no significant effect of Provision for bad debt on profitability of firms but there exist a significant effect of provision for employee benefit on the profitability of firms. In consonance with this study's findings, it was recommended that Listed firms in Nigeria should make Proper estimates in other to capture the real cost incurred so as to determines its effect on firms profitability. Firms should also be more focus on their estimates to enable them makes the right decisions as regards their debt policies.Key words: Provision for bad debt, Provision for employee benefits and Profitability.
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