Earnings management, funding and diversification strategies of banks in Africa

Mohammed Amidu and Ransome Kuipo

Accounting Research Journal, 2015, vol. 28, issue 2, 172-194

Abstract: Purpose - – This paper aims to investigate the implications of earnings management for funding and diversification strategy within the context of developing and emerging economies. Design/methodology/approach - – The authors raise two issues pertinent to bank earnings management: first, whether there is evidence of earnings management of banks in the selected African countries; and second, what must have accounted for the banks to engage in such practices? Findings - – The results show that almost all the 330 banks in the 29 African countries sampled are found to have engaged in some management of their earnings during the period 2002-2009. The authors also find evidence that bank activity mix and funding modes explain bank earnings quality. Overall results indicate that the sensitivity of earnings management to revenue diversification across interest income decreases, as bank market shares increases. Originality/value - – The authors investigate how earnings management is affected by banks intermediation strategies.

Keywords: Diversification strategy; Earnings management; Funding modes; G21; M41 N27 (search for similar items in EconPapers)
Date: 2015
References: Add references at CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (text/html)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (application/pdf)
Access to full text is restricted to subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eme:arjpps:v:28:y:2015:i:2:p:172-194

DOI: 10.1108/ARJ-07-2013-0045

Access Statistics for this article

Accounting Research Journal is currently edited by Professor Reza Monem

More articles in Accounting Research Journal from Emerald Group Publishing Limited
Bibliographic data for series maintained by Emerald Support ().