INTERNATIONAL JOURNAL OF NOVEL RESEARCH AND DEVELOPMENT International Peer Reviewed & Refereed Journals, Open Access Journal ISSN Approved Journal No: 2456-4184 | Impact factor: 8.76 | ESTD Year: 2016
Scholarly open access journals, Peer-reviewed, and Refereed Journals, Impact factor 8.76 (Calculate by google scholar and Semantic Scholar | AI-Powered Research Tool) , Multidisciplinary, Monthly, Indexing in all major database & Metadata, Citation Generator, Digital Object Identifier(DOI)
Manufacturing firms are vulnerable to liquidation and financial problems in firms, with some dying almost immediately and a public uproar against the sector's poor management. Despite solid accounting ideas and conventions, accounting standards and company regulations, as well as expert accountants and auditors in place to avoid and control business failure, studies have revealed that acts of liquidation and financial scandals have persisted in corporations. Several attempts have been undertaken to determine possible reasons and ways to mitigate financial scandals. There is a paucity of work on how accounting policy selection, income smoothing, and artificial transactions can aid in the complete avoidance of liquidation and financial scandals. The purpose of this study was to investigate the association between creative accounting and corporate failure in Nigerian manufacturing firms.
The study used a field survey design that was a combination of exploratory and explanatory. The research focused on the 77 manufacturing companies listed on the Nigeria Exchange Group (NEG) as of December 31, 2022. The study targeted 300 internal control and accounting department personnel from five (5) selected manufacturing organizations based on their fund ratings by DataPro (2019) and as Nigeria's industrial destination by Manufacturers Association of Nigeria MAN (2017). Using the purposive sampling technique, the sample size was limited to two hundred and ninety-eight (298) respondents. A standardized and validated questionnaire was used to collect data. Cronbach's Alpha reliability coefficients varied from 0.78 to 0.86, with a 99.3% response rate. Data was analyzed using the Descriptive and inferential (regression) statistics.
The findings revealed that creative accounting have a positive significant effect on corporate With the following r factors: accounting policy choice ( r = 0. .809a; p 0.000 0.05); income smoothing ( r= 0. 783a; p 0.000 0.05) artificial transaction ( r = 0. 864a; p 0.000 0.05) and Creative accounting (Adj. R2 = 0.794, F(3, 296) = 385.259, p 0.05), all have positive statistical significant effect on corporate failure.
Based on the outcomes of the research, this study indicated that creative accounting procedures encourage financial scandals, which lead to corporate failure. The research advises, among other things, that creative accounting be considered a major crime, and that accounting bodies, law courts, and other regulatory authorities take strict measures to put an end to the practice.
"CREATIVE ACCOUNTING AND CORPORATE FAILURE IN NIGERIAN MANUFACTURING COMPANIES", International Journal of Novel Research and Development (www.ijnrd.org), ISSN:2456-4184, Vol.9, Issue 4, page no.a44-a62, April-2024, Available :http://www.ijnrd.org/papers/IJNRD2404007.pdf
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2456-4184 | IMPACT FACTOR: 8.76 Calculated By Google Scholar| ESTD YEAR: 2016
An International Scholarly Open Access Journal, Peer-Reviewed, Refereed Journal Impact Factor 8.76 Calculate by Google Scholar and Semantic Scholar | AI-Powered Research Tool, Multidisciplinary, Monthly, Multilanguage Journal Indexing in All Major Database & Metadata, Citation Generator
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