Creative Accounting and Investment decisions in listed manufacturing firms in Nigeria

Creative Accounting and Investment decisions in listed manufacturing firms in Nigeria

Author by Dr. Tunji Siyanbola

Journal/Publisher: Journal Of Accounting And Taxation

Volume/Edition: 12

Language: English

Pages: 39 - 47

Abstract

Creative accounting involves the manipulation of company’s records toward a predetermined target.
Financial information manipulation is usually aimed at misleading the users of financial reporting
through the provision of information that affects their decision making. This study evaluated the effects
of creative accounting on investment decision in selected listed manufacturing firms in Nigeria’s real
sector for the period of 2007 to 2017. The study was empirically carried out by extracting related data
from CBN statistical bulletin and NDIC annual reports for the period on which regression analysis was
used. The result revealed a positive but insignificant effect of creative accounting on investment
decisions in listed manufacturing firms in Nigeria’s real sector as it reflects in the adjusted R2 of
0.742983 or 74.30%. The study therefore concluded and recommended that proper corporate
governance should be applied to ensure that creative accounting is used for stakeholder’s benefit


Other Co-Authors