The Impact of Creative Accounting on Organizational Effectiveness: A Study of Manufacturing Firms in Nigeria

Micah, Leyira Christian; Chinwe, Okeoma Eunice

doi:10.9734/bjemt/2014/7736

Cited by 5 publications

(2 citation statements)

References 10 publications

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“…Micah, and Okeoma [16] examined the impact of creative accounting on organizational effectiveness in Nigeria. The independent variable in the study was creative accounting measured by income smoothing, artificial transaction, and regulatory flexibility, while the dependent variable was organizational effectiveness measured by Profitability and Market share selected as the population of study at firm level.…”

Section: : Relationship Between Manipulation Of Accounting Figures An...mentioning

confidence: 99%

Manipulation of accounting figures and financial performance of listed nigerian firms

Temile¹,

Enaruna²,

Jatmiko³

et al. 2021

J.M.S

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This study was based on the manipulation of accounting figures and the financial performance of listed firms in Nigeria between the periods of 2007-2019 (Thirteen years). Ninety (90) firms were drawn as research samples among one hundred and nine (109) listed non-financial firms in Nigeria. The study was done quantitatively and conducted from secondary data obtained from the annual reports of various firms. Descriptive statistics and correlation analysis were used to determine the nature of the relationship between the independent and dependent variables. Given the hypothesis formulated for this research, the methodof model estimation employed was a panel regression analysis with the aid of Stata 14 software. The findings revealed that some manipulation techniques such as incorrect asset valuation and timing of assets transaction impact positively on return on assets,thereby justifying the act, albeit unethical. Other techniques such as revenue falsification and understatement of liabilities were seen to negatively impact the return on assets. The study recommends among others, that investors should employ the services of competent financial analysts to scrutinize financial statements of firms they want to invest in.

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Section: : Relationship Between Manipulation Of Accounting Figures An...mentioning

confidence: 99%

Manipulation of accounting figures and financial performance of listed nigerian firms

Temile¹,

Enaruna²,

Jatmiko³

et al. 2021

J.M.S

View full text Add to dashboard Cite

show abstract

“…A company that has reached an unstable situation will undoubtedly begin to use creative accounting techniques in order to artificially increase profit, and thus, the financial situation to be temporarily concealed. This theory according to Micah & Chinwe, (2014) is that incompetent managers try to hide the lack of performance by using creative accounting techniques, which leads to the idea that sometimes, creative accounting may be associated with failure of the company and to postpone the "fatal" day. Creative accounting was among the major factors that resulted in the recent banking crisis in Ghana.…”

Section: Introductionmentioning

confidence: 99%

Assessing The Effect of Creative Accounting on Corporate Performance: a Case of Selected Listed Commercial Banks on the Ghana Stock Exchange

Mensah,

Ruby,

Osei

et al. 2024

Injurity

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The study examined the effect of creative accounting on the performance of commercial banks listed on the Ghana Stock Exchange. The research design chosen for this study is an ex-post facto research design, which involves examining facts that have already occurred without any interference. The research approach adopted is quantitative, focusing on objective measurements and statistical analysis of data collected through surveys. The study relies on secondary data, specifically financial reports of deposit money banks listed on the Ghana Stock Exchange. The target population includes all the listed commercial banks on the exchange. The sample size consists of 8 out of the 9 commercial banks selected based on their up-to-date financial reports. The data analysis was done with the aid of SPSS software, employing descriptive and inferential statistical techniques such as multiple regression was used to determine the cause and effect relationship among variables. The study found that there was a strong positive link among a bank's size, creative accounting and sales growth and its return on assets and return on equity. Also, SIZE and SG positively affect the profitability (ROA and ROE) of the listed firms on the GSE. However, Creative Accounting negatively affects profitability (ROA and ROE). Therefore, ccommercial banks should be critical regarding on issues or items that they classified under creative accounting. Also, commercial banks should develop strategies to lure many shareholders to invest in the banks in order to improve upon their performance. Moreover, there is urgent need for monitoring companies’ activities in order to raise the quality of financial reporting in Ghana. This can be achieved in determining which accounting manipulation is kept within the limits of legality. Lastly, commercial banks should strengthen their internal control systems in order to deal with issues of creative accounting and misleading financial reports.

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Ontological basis of the creative accounting phenomenon as a financial misstatement

Kallantary,

Valiyan,

Abdoli

et al. 2024

JAL

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PurposeThis article aims to contribute to the accounting knowledge literature by presenting the framework of creative accounting factors and evaluating their identified factors through an argumentation-based total interpretive structural modeling (TISM) approach.Design/methodology/approachThis study adopted mixed, inductive and deductive approaches to develop an integrated framework, validate its practicability and verify its effectiveness in selected manufacturing firms listed on the Tehran Stock Exchange (TSE), respectively. In developing the framework and implementation procedure, the study employed an exploratory data collection (qualitative) approach to review the phenomenon of creative accounting factors. Then, in this study’s second phase, TISM is used to develop the framework of creative accounting design. This study used two types of theoretical sampling in the qualitative part, including theoretical and snowball sampling. Also, the participants in the TISM process in this study were specialized analysts of the TSE.FindingsBased on the mixed method of this study, the result in the qualitative part provides the creative accounting framework of the existence of three categories. There are 6 components and 35 themes during 12 interviews. In the quantitative section, it was determined that two factors, namely the type of ownership firms and intrinsic objectivity, are the most effective drivers for the formation of creative accounting in TSE firms.Originality/valueSo far, it is rare to find preceding studies that have proposed, validated and practically tested an integrated creative accounting framework within the context of financial markets. Thus, the authors understand that this is the very first research focused on the development of a framework for capital market companies to continuously be competitive and could help financial decision-makers, practitioners and academicians in their perception of knowing more about the financial functions of firms.

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The Impact of Creative Accounting on Organizational Effectiveness: A Study of Manufacturing Firms in Nigeria

Cited by 5 publications

References 10 publications

Manipulation of accounting figures and financial performance of listed nigerian firms

Manipulation of accounting figures and financial performance of listed nigerian firms

Assessing The Effect of Creative Accounting on Corporate Performance: a Case of Selected Listed Commercial Banks on the Ghana Stock Exchange

Ontological basis of the creative accounting phenomenon as a financial misstatement

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