TAX SHIELD DEPRECIATION AND EARNINGS MANAGEMENT OF NIGERIAN COMMERCIAL BANKS

Abstract

This study determines the effect of depreciation on Earnings Management in Nigerian commercial banks. Ex Post Facto research design was adopted for the study. A sample size of thirteen (13) was used from a population of twenty two (22) commercial banks listed on the Nigerian Stock Exchange from 2010-2019. Data were extracted from audited accounts of the sampled banks. regression analysis was employed to test the hypothesis. The result showed that depreciation has a positive significant effect on Earnings Management of Commercial Banks in Nigeria. Based on the findings of the study, the researchers recommended that tax authorities should ensure that depreciation to be deducted must be associated with an asset used in a business or income-generating activity, and have an expected lifespan of more than one year.