EARNINGS QUALITY AND FINANCIAL PERFORMANCE OF CONSUMER GOODS FIRMS IN NIGERIA

This study investigated the relationship between earnings quality and firms’ performance of consumer goods in Nigeria. The objectives of the study were to determine whether the Jones model, income smoothing, earnings persistence, and value relevance have any relationship with the profitability of Nigeria Exchange Group quoted consumer goods companies using return on assets as a measure of profitability. The study covered the period 2009-2024, while secondary data collection was done by obtaining data from the reviewed companies’ financial statements. Analysis was conducted using correlation analysis, panel unit root test, and regression model estimation. The test results revealed that the Jones model, income smoothing, earning persistence, and value relevance have no significant relationship with the return on assets of Nigerian consumer goods companies the study therefore recommended that management should continue to use the Jones performance-adjusted DAC model.