Fictitious Revenue, Improper Asset Valuation and Performance of Listed Non-Financial Firms in Nigeria.

Abstract

There are still many cases of fictitious revenue and improper assets valuation found in non-financial institutions due to weak implementation of corporate governance which is indicated by weak internal supervision and weak ethical commitment. Given the foregoing this study examined the effect of fictitious revenue, improper asset valuation and financial performance of listed non-financial firms in Nigeria. To achieve these objectives, correlational research design was employed and the study utilized twenty (20) selected listed non-financial firms that had consistently published their audited annual financial reports from 2008 to 2022, and analyzed the data using panel multiple regression technique with the help of statistical tools (E-view 10). The result of the study revealed that fictitious revenue had positive and insignificant effect on financial performance of listed non-financial firms in Nigeria. While improper assets valuation had negative and significant effect on financial performance of listed non-financial firms in Nigeria. Based on this finding, it is recommended that non-financial firms should invest in developing strong valuation expertise within their finance and accounting teams. This can be achieved by providing training and strictly adhere to accounting standard when valuing assets.