Relationship between corporate governance and creative accounting practices of Nigerian banks

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dc.contributor.authorOlaniyi, T.A
dc.contributor.authorJimoh, T
dc.contributor.authorYunus, B.A
dc.date.accessioned2021-03-08T08:42:07Z
dc.date.available2021-03-08T08:42:07Z
dc.date.issued2017
dc.description.abstractCorporate collapse in the Nigerian banking sector and the associated crisis of confidence portends and agonizing danger for the growth of other sectors as these banks employ different creative accounting methods with a view to surmounting the intense competition, reduce cost and lessen the burden of global economic meltdown. Literature reveals that efforts geared towards performance enhancement/cost control are not unconnected with corporate governance breakdown; as such, this study evaluates the relationship between corporate governance CG (Internal control system/ ICS; audit committee experience/ ACE; board independence/ BDI; external auditors independence/ EXI) and creative accounting (CA) practices in Nigerian banks. Secondary data were obtained from audited financial reports of all the 15 quoted commercial banks on the Nigerian Stock Exchange (NSE) between 2008 to 2014 and were analyzed using panel regression technique while error Composite Model estimation technique (Hausman specification test) lends credence to the supremacy of Random Effect Model (REM) over Fixed Effect Model (FEM) for interpretation purpose. The study finds that ICS and ACE have negative/inverse relationship (Coeff= -0.3645 & -0.2956 respectively) with CA while BDI and EXI have positive relationship (Coeff= 0.5789 & 2.8976 respectively) with CA. The study concludes that CG has statistically significant relationship with CA: F-stat (9.0323) and prob (F-stat) 0.0000 at 5% significance level and recommends featuring of more non-executive directors with less substantial portion of shares than the executive ones while ICS and ACE should adequately addressed to enlist compliance with good CG practices and eradicate CA practices. This will enhance bank performance, reduce confidence crisis and improve Nigeria’s economic growth.en_US
dc.identifier.citationOlaniyi, T.A., Jimoh, T. & Yunus, B.A. (2017): Relationship between corporate governance and creative accounting practices of Nigerian banks. Ilorin Journal of Accounting. 4 (1&2); 70-88en_US
dc.identifier.urihttp://hdl.handle.net/123456789/4463
dc.language.isoenen_US
dc.publisherDepartment of Accounting, University of Ilorin.en_US
dc.relation.ispartofseries4(1&2);70-88
dc.subjectcorporate governanceen_US
dc.subjectcreative accountingen_US
dc.subjectincome smoothingen_US
dc.titleRelationship between corporate governance and creative accounting practices of Nigerian banksen_US
dc.typeArticleen_US

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