Exploring Earnings Management Practices and Their Influence on Investment Efficiency among Listed Companies in Zambia

Abstract

This study explores the influence of earnings management on investment efficiency in Zambia, addressing a critical gap in local financial literature. Through empirical analysis and stakeholder surveys, it examines the prevalence of earnings management, its relationship with investment efficiency, and strategies to mitigate its effects. Findings reveal varied perceptions among stakeholders regarding earnings management practices and their influence on investment decisions. Strategies to combat earnings management emphasize transparency, regulatory oversight, and stakeholder education. Recommendations include strengthening regulatory frameworks, enhancing stakeholder awareness, and promoting industry collaboration. This research contributes to understanding financial practices in Zambia, providing insights for policymakers, regulators, and businesses. Further research is needed to deepen understanding of earnings management's complexities and its implications for financial reporting and investment efficiency.