CREATIVE ACCOUNTING AND CORPORATE FAILURE IN NIGERIA: MANAGERS PERCEPTION IN LISTED MANUFACTURING COMPANIES

Abstract

The study examined Creative Accounting and Corporate Failure in Nigeria: Managers Perception in Listed Manufacturing Companies. The Theoretical Framework on which the subject of the study was based is the Ethical Theory. The Population of the study comprises Forty Three (43) Listed Manufacturing Companies in Nigeria Stock Exchange. The sample size of the study was Thirty Nine (39) and it was determined by Taro Yamane. Nine (9) Questionnaire Items were drawn from (3) Research Questions and were administered directly to the sampled Managers of the Manufacturing Companies using the Method of Telephonic Interviewing, Google form, Emailing and on the Spot Administering. Descriptive Statistics (Mean and Standard Deviation) was used as method of Statistical Tool. The major findings were that Income Smoothening affect Corporate Failure, Artificial Transaction plays major role in Corporate Failure and Accounting Policy Choice has a great impact on Corporate Failure. It is therefore recommended that the practice of Creative Accounting should be considered a punishable offense by the law and therefore accounting bodies other regulatory authorities need to adopt strict measure to stop the practice and punish offenders.