ODO, John Onyemaechi and UGWU, James Ike (2020) CREATIVE ACCOUNTING AND PERFORMANCE OF DEPOSIT MONEY BANKS IN NIGERIA. Journal of Accounting Information and Innovation, 6 (8). pp. 37-47. ISSN 4243 – 406X

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The sudden collapse of firms in recent past have cast doubt on the quality of accounting services of the employees and credibility and quality of work of auditor (internal and external) as accountants are being accused of succumbing to the pressure from the management to prepare and present report suggestive of impressive performance and clean bill of health of the organization concerned. The study therefore evaluated the contribution of creative accounting practices on the performance of deposit money banks in Nigeria. The study adopted survey research design. Judgmental random sampling technique was employed to select four banks out of 21 deposit money banks in Nigeria. Primary data were collected from 60 respondents that were chosen through stratified random sampling technique. Descriptive statistics were used to analyze hypotheses one and two in which responses to the questionnaire in 5 points Likert Scale were clustered into two groups. Correlation technique was adopted in analysis of hypothesis three. The results of the analyses showed that creative accounting contributes significantly to non-financial and financial performance of banks in Nigeria. Also revealed was high correlation between contribution of creative accounting practices on financial and non financial performance of banks. The research concludes that creative accounting negatively affect banks in Nigeria as decisions made based on the information so provided were deceptive hence the reports of corporate collapse as a result of such actions. The study recommends amongst others that Accountants in the employ of organizations with intent to indulge in creative accounting practice should resist and/or persuade the management by explaining in details the implications of engaging in the act as it is unethical and give misleading financial performance indication.

Item Type: Article
Subjects: H Social Sciences > HJ Public Finance
Divisions: Faculty of Management and Social Sciences
Depositing User: mrs chioma hannah
Date Deposited: 03 Nov 2020 10:51
Last Modified: 03 Nov 2020 10:51

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