The influence of Corporate Governance on Creative Accounting Practices in Nigeria
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Date
2013
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Journal ISSN
Volume Title
Publisher
The Department of Business Administration, University of Ilorin, Ilorin, Nigeria
Abstract
The collapse of some corporate organisations in Nigeria has brought the issue of creative accounting and corporate governance to the forefront. Hence, this study examines the relationship between corporate governance and creative accounting practices from selected Nigerian companies. Using respondents from twenty-five Nigerian companies that have their head offices located in Lagos State, the propositions made were tested using Pearson product coefficient of correlation and regression analysis. Findings from the study suggest that there is significant and positive association between rule observance and creative accounting practices. Evidence also exists on the relationship between creative accounting practices and the decision usefulness of the financial statements. The study concluded that effective corporate governance is necessary to the proper functioning of corporate firms. Finally, the study recommends that corporate governance should be used as a tool to help stem the tide of creative accounting practices.
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Keywords
Corporate governance, Internal Control effectiveness, Auditors' independence, Creative accounting practices