Corporate Governance, Regulatory Agency and Creative Accounting Practices in Nigeria

Odia, James; Ogiedu, Killian Osikhena

doi:10.5901/mjss.2013.v4n3p55

Cited by 10 publications

(12 citation statements)

References 21 publications

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“…In the case of FRCN and PAO, there was an inverse relationship with CAP, although it is not statistically significant. This outcome is in tandem with the work of Odia et al (2013) that NASB has a statistically insignificant and decreasing relationship with CAP.…”

Section: Test Of Hypothesissupporting

confidence: 71%

“…The financial statements are the medium for reporting on an enterprise's operating performance, financial position, and change in its financial posi-tion. The accounting information generated by the financial statements enables the users to make informed economic decisions (Odia & Ogiedu, 2013). The ability to meet the needs of various stakeholders determines the value of financial information (Khanagha, 2011).…”

Section: Creative Accounting Practices and Financial Reporting Qualitymentioning

confidence: 99%

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Regulatory agencies and creative accounting practices in Nigeria

Olojede

Iyoha

Ben-Caleb

et al. 2020

Problems and Perspectives in Management

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Regulation and regulatory agencies are to serve as external control mechanisms to ensure that the financial statements provide a fair view of the company’s operating performance and financial position, free of any unethical practice and suitable for all stakeholders’ needs. Despite the increasing importance of regulatory agencies in enforcing compliance with the standards and laws, it occupies a limited space in accounting research. This study, therefore, investigated the impact of regulatory agencies on creative accounting practices. The study used descriptive and survey research design to achieve its aim. It employed a multi-stage sampling technique, also questionnaires were distributed among 405 respondents consisting of preparers of accounts, users of accounts, and regulators. Out of the number distributed, the respondents returned 241 copies, and all of them were found suitable. The study used Ordinary Least Squares (OLS) to analyze the data and test the hypothesis. The empirical findings showed that the regulatory agencies jointly show a significant impact on creative accounting practices, but the level of contribution to the overall impact by each regulatory agency varies. The study concludes that Nigeria’s regulatory agencies are weak and inefficient in enforcing compliance with the relevant rules. The study recommends that the institutional capacity of the regulatory agencies should be strengthened by enforcing compliance with financial reporting rules and regulation. Most of these agencies should develop capacity in the areas of manpower, information technology infrastructures, and funding. Acknowledgment The authors acknowledge Covenant University who has solely provided the platform for this research and has also fully sponsored the research cluster search for data across the country.

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Section: Test Of Hypothesissupporting

confidence: 71%

Section: Creative Accounting Practices and Financial Reporting Qualitymentioning

confidence: 99%

Regulatory agencies and creative accounting practices in Nigeria

Olojede

Iyoha

Ben-Caleb

et al. 2020

Problems and Perspectives in Management

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“…Creative accounting actions are not illegal if the recording of financial statements is carried out in accordance with applicable financial reporting standards (Diana & Mădălina, 2008;Kamiński, 2014;Yadav, 2013). In contrast to the opinion stated by Odia & Ogiedu (2013) that creative accounting is a fraudulent action by manipulating financial statement information for the benefit of the company. In line with the opinion of Remenaric, et al (2018) who said that the activity of changing financial information in creative accounting provides a great opportunity for accountants to commit fraud.…”

Section: Introductionmentioning

confidence: 78%

The Effect of Religiosity and Ethical Orientation on Perceptions of Undergraduate Accounting Students on Creative Accounting

Jaya

Sukirno

2020

jda

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The purpose of this research is to determine the effect of religiosity and ethical orientation on the perception of creative accounting. The sampling technique used was purposive sampling technique. Students who participated as respondents were as many as 107 students from Universitas Negeri Yogyakarta and 249 students from Universitas Islam Indonesia who were then grouped based on criteria. The criteria used are already or are currently taking intermediate financial accounting 1 and intermediate financial accounting 2 courses, auditing courses, and business ethics courses. Based on the predetermined criteria, a sample of 202 students was obtained consisting of 98 Universitas Negeri Yogayakarta students and 104 Universitas Islam Indonesia students. The students involved in this study were given a questionnaire to fill in and the data obtained were analyzed using multiple regression methods. The results of this study indicate that there is an effect of religiosity on students’ ethical perceptions in creative accounting. The students with high religiosity will have perceptions that are more ethical on creative accounting. The results of the analysis also show that ethical orientation has an effect on creative accounting. This means that the higher the ethical orientation of students, the more ethical their perceptions of creative accounting are.

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“…From a positive viewpoint, these practices coincide with accounting principles that recognize changes in the economic, social and political environment while from a negative viewpoint, they are negative activities which promote unethical practices by which providers of capital are presented with misleading information about the firm (Odia & Ogiedu, 2013). Bhasin (2015) offered insights into specific methods employed by firms in manipulating figures presented in financial statements.…”

Section: Literature Review Theoretical Framework and Hypotheses Devel...mentioning

confidence: 99%

“…Creative accounting is a term used to describe means used by preparers of financial statements to make companies become competitive in the business environment where they operate (Odia & Ogiedu, 2013). This practice is manifested through the manipulation of the statement of financial position, managing results through inconsistent accounting methods or policies, capitalizing costs and abuse of materiality concept to validate inaccuracies.…”

Section: Introductionmentioning

confidence: 99%

Creative Accounting and Shareholders Wealth Maximization in Listed Consumer Goods Companies in Nigeria

Iredele

Adeyeye²,

Owoyomi³

2022

CJFA

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This study examines the effect of creative accounting practices on the shareholders wealth of 90 firm-year observations of ten (10) consumer goods companies listed on the Nigerian Stock Exchange (NSE). Ex post facto research design was adopted usingdataset for the period 2011–2019 which were collated from the annual reports and financial statements of the listed consumer goods companies. Four hypotheses were proposed and tested using pooled panel data regression. Findings revealed that frequentchanges in inventory valuation method and assets valuation methods respectively have significant effect on shareholders wealth, while frequent changes in depreciation methods and liabilities valuation methods do not significantly affect shareholders’ wealth. The study recommends that external auditors should pay attention to discretionary items in the financial statements in order to ensure that the assumptions used by managers are fair. Regulators should also evaluate the adequacy of policies around inventory and assets valuation while financial analysts and shareholders should note the application and consistency of accounting policies on inventory and assets.

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Corporate Governance, Regulatory Agency and Creative Accounting Practices in Nigeria

Cited by 10 publications

References 21 publications

Regulatory agencies and creative accounting practices in Nigeria

Regulatory agencies and creative accounting practices in Nigeria

The Effect of Religiosity and Ethical Orientation on Perceptions of Undergraduate Accounting Students on Creative Accounting

Creative Accounting and Shareholders Wealth Maximization in Listed Consumer Goods Companies in Nigeria

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