This research explores the association among fair value accounting and earnings management in listed investment firms in Nigeria, using the framework of signaling theory. Fair value accounting purposes is to deliver timely and relevant information about asset and liability values, while earnings management involves the strategic manipulation of financial statements. Signal theory suggests that fair value accounting serves as a signal to stakeholders, conveying information about an enterprises financial condition and prospects. The study utilizes a quantitative research design, analyzing data collected from financial reports and disclosures of selected investment firms. Net asset value (NAV), abnormal performance, and discretionary expenses are used as proxies for fair value accounting and earnings management. Descriptive statistics, correlation coefficients, and regression analysis are employed to examine the relationships between these variables. The findings reveal a weak negative correlation between NAV and abnormal performance, indicating a negligible relationship. However, a strong positive correlation is observed between NAV and discretionary expenses, indicating a significant association. Regression analysis confirms the impact of discretionary expenses on NAV, while abnormal performance shows no significant relationship. Based on the results, recommendations are made for investment firms to focus on managing discretionary expenses, monitor abnormal performance, and establish robust controls to ensure transparency in financial reporting.