CREATIVE ACCOUNTING AND CORPORATE FAILURE

ABSTRACT

This research investigates creative accounting and corporate failure. The population of this study will consist of employees of top accounting and auditing firms in Nigeria, while the convenience sampling technique will be adopted for the study. The method of analysis used was questionnaires which were analyzed using descriptive statistic, Pearson moment correlation matrix and linear regression. The study concludes that Organizations, whether small, medium, or large in size, have a major goal of increasing performance because it is the bottom line for every organization, and non-performance can lead to failure. Over the last few decades, scholars, practitioners, and policymakers have provided reasons for increased performance of public enterprises; one particular argument on which this study focuses on is the significance of creative accounting practices as one of the main pillars of firms’ performance in Nigeria and the study recommend that The firms should improve on their creative accounting practices by adopting modern techniques for optimal practice of creative accounting as this in the long run will improve corporate performance and Optimum and efficient provision for depreciation should be the core of these firms, this is to ensure that proactive measures taken for improved working capital management and corporate performance.