Antecedents of Earnings Management in Mining Companies in Zambia: A Case Study of Mopani Copper Mines in Mufulira

This study investigates the factors influencing earnings management in Zambia’s mining sector, with particular emphasis on tax incentives and corporate governance practices at Mopani Copper Mines. A quantitative research design was employed, using structured questionnaires administered to 370 employees and management staff. Data was analysed using descriptive statistics, regression analysis, and ANOVA. The results show that managerial incentives exert the strongest influence on earnings management (mean = 3.78), followed by market pressures (mean = 3.53), competitive environment (mean = 3.32), and internal policies (mean = 3.06). Regression analysis indicates a very strong model fit (R = 0.962, R2 = 0.926, F = 1143.059, p < 0.001), demonstrating that 92.6% of the variation in earnings management is explained by these factors. Tax incentives also display a strong positive relationship with earnings management (R = 0.924, R2 = 0.854, F = 534.951, p < 0.001), with mean responses ranging from 3.46 to 3.73. Corporate governance practices show a moderate but significant effect on financial reporting integrity (R = 0.691, R2 = 0.478, p < 0.001), with internal audits identified as the most effective governance mechanism. The study concludes that earnings management in Zambia’s mining sector is jointly shaped by managerial incentives, tax incentives, and governance structures, and recommends strengthening corporate governance, improving transparency around tax incentives, and reinforcing internal controls to enhance financial reporting quality and sustainability.