http://www.iaeme.com/IJMET/index.asp 317 editor@iaeme.com International Journal of Mechanical Engineering and Technology (IJMET) Volume 10, Issue 08, August 2019, pp. 317-332, Article ID: IJMET_10_08_025 Available online at http://www.iaeme.com/ijmet/issues.asp?JType=IJMET&VType=10&IType=8 ISSN Print: 0976-6340 and ISSN Online: 0976-6359 © IAEME Publication ADDRESSING ABNORMAL CORPORATE EARNINGS FROM THE CONTEXT OF ACQUISITIONS AND BOARD TURNOVER Asogwa Cosmas Ikechukwu Department of Accountancy, University of Nigeria, Nsukka Joseph Chukwuma, N Department of Business Education, University of Nigeria Nsukka Christiana Ukamaka Nwachukwu Department of Agricultural Education, University of Nigeria Nsukka, Nigeria. *Anthonia Uju Uzuagu Department of Business Education, University of Nigeria Nsukka. Nigeria. Honesta Chidiebere Anorue Department of Business Education, University of Nigeria Nsukka. Nigeria. Favour Amarachi Moghalu Department of Business Education, University of Nigeria Nsukka. Nigeria. *Corresponding Author ABSTRACT The purpose of this paper is to examine whether the inverse relationship between upward accrual management following acquisitions, and contemporaneous board turnover that leads to a downward accrual manipulation can interact to correct abnormal accrual strategies of managers and then normalize earnings to avoid accrual mispricing. Evidence has shown that managers have used abnormal accrual tactics to mislead investors. There has been substantial global concern on how to fix the phenomenon using alternative effective strategies.This paper used an ex post facto design to analyze sample of 3600 firm-years. The authors draw heavily from Jones model in estimating normal accrual, which was compared with actual total accrual to determine both upward and downward discretionary accrual behavior of potential outgoing managers and the new board leaders. The level of correction was based on the magnitude of discretionary accrual offsetting. The researchers found that following acquisitions, the potential outgoing managers engage in accrual-increasing strategies consistent with extant literatures. However, where the acquisitions are contemporaneous with board changes, the ‘Big bath’ accounting players reverse a significant proportion of the abnormal accrual. The incoming managers can reverse