Accounting Practices and Financial Performance of Quoted Manufacturing Firms in Nigeria: Evidence from Revenue Recognition, Inventory Valuation and Depreciation Practices

This study examines the relationship between selected accounting practices and the financial performance of quoted manufacturing firms in Nigeria. The study focuses on revenue recognition practices, inventory valuation methods and depreciation practices, with return on assets (ROA), operating profit margin (OPM) and return on equity (ROE) serving as the respective performance indicators. An ex-post facto design was adopted, using secondary information derived from the published financial reports of selected quoted manufacturing firms. The reported sample comprises Lafarge Africa Plc, BUA Group and Dangote Group. Descriptive statistics, correlation analysis and simple regression models were employed. The reported results indicate positive and statistically significant relationships between revenue recognition practices and ROA (R = 0.748; R² = 0.559; β = 0.580; t = 5.999; p < 0.001), inventory valuation methods and OPM (R = 0.786; R² = 0.618; β = 0.691; t = 6.118; p & lt; 0.001), and depreciation practices and ROE (R = 0.804; R² = 0.646; β = 0.742; t = 6.761; p & lt; 0.001). The findings suggest that accounting policy choices and their implementation are associated with reported financial performance in the firms covered by the study. The study recommends stronger compliance with applicable financial reporting requirements, robust internal controls over revenue recognition, effective inventory systems, and periodic review of depreciation policies. Because the source manuscript does not state the exact study period and contains some inconsistencies in the reported regression tables, the numerical findings should be checked against the underlying dataset and statistical output before journal submission.