International Journal of Academic Accounting, Finance & Management Research (IJAAFMR)   Year: 2023 | Volume: 7 | Issue: 6 | Page No.: 51-56 Income Smoothing (INSM) Tendencies and Financial Performance of Targeted Banks in Nigeria Download PDF ADEGBITE, Yetunde Abie, & EDHEKU, Ochuko Joy Abstract: This paper examined the effect of income smoothing-INSM on the Nigerian banks' performance. The three (3) performance proxies considered are common stocks, return on equity-ROE, and Tobins Q. Although, the study populations are the 14 quoted DMBs in Nigerian as at December, 2021, five of these banks were selected. The primary source of data collection was used through the aid of a well-structured questionnaire. 64 copies were used for data for analysis from the 72 copies distributed. Using SPSS software, version 21.0, the variables were subjected to complementary statistical test and the results were used for hypothesis verification. The result obtained shows that INSM has a strong, direct, and high effect on ROE. Hence, the paper suggests that, robust internal control system should be advocated for. Again, Nigerian accountants should adhere strictly to ethical standards. Lastly, shareholders should only use audited financial statements in making material and significant business decisions.