Firm survival, Bankruptcy, Discretionary loss provision, Profitability, Financial institutions


The firm's survival is regarded as an essential element usually used by the capital market participants in making vital decisions. This study examines the combined roles of bankruptcy, earnings management, and profitability in explaining a firm's survival in the listed Nigerian financial institutions. To achieve this, a descriptive research design is adopted and data were generated from databases of the listed companies in the Nigerian Stock Exchange for the period 2006 to 2015. Panel data analysis was employed in analysing collected data of the sampled 29 financial institutions in the Nigerian financial sector. The study found that most of the Nigerian financial firms have a sound firm's survival indicators, with very few having severe survival threats. Specifically, the Bankruptcy model of the firm under study proves to be within the safe zone. Whereas, the discretionary losses provisions of a firm under study are below 5.0 per cent with proving adequate monitoring and compliance with relevant policies. However, the profitability of the majority of firms' understudy is below 5.0 per cent, which indicates that most of the Nigerian listed financial companies had experienced underutilisation of their assets

Author Bio

Dr.S Sunusi Garba and Adamu M. Abubakar are staff of Department of Accounting Federal University Dutse.

Dr. Ahmad I. Mohammed is a staff of Department of Banking and Finance, Federal University Dutse.

Dr. Mohammed S. Damamisau is a staff of Department of Taxation, Federal University Dutse.

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