Misappropriation of Assets, Improper Expenses Recognition and Financial Performance of Listed Non-Financial Firms in Nigeria

Abstract

The Nigerian business landscape, like many others globally, faces persistent challenges related to corporate misconduct, ethical lapses, and accounting irregularities. These challenges have the potential to undermine not only the financial integrity of individual firms but also the overall health and stability of the nation’s financial markets. Given the foregoing, this study examined the effect of misappropriation of assets and improper expenses recognition on financial performance of listed non-financial firms in Nigeria. To achieve these objectives, longitudinal research design was employed and the study employed twenty (20) 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 both misappropriation of assets and improper expenses recognition had positive and insignificant effect on financial performance of listed non-financial firms in Nigeria. Thus, this study concluded that both misappropriation of assets and improper expenses recognition does not appear to be a primary driver of financial success or failure for the listed non-financial firms under study. The study recommended that listed non-financial firms should encourage a mindset of continuous improvement throughout the organization and seek opportunities to optimize operations and financial performance, even if misappropriation of assets and improper expenses recognition are not a significant issue.