CREATIVE ACCOUNTING AND CORPORATE FAILURE IN NIGERIA

ABSTRACT

This study aims to examine the effect of creative accounting on corporate failure in Nigeria, focusing on discretionary accrual management, real earnings management, income smoothing, and tax avoidance. The population consists of all 173 companies listed on the Nigerian Exchange Group (NGX) as of 2022, with a sample of 20 companies selected using a convenience random sampling method. The research employs a correlation research design to investigate the relationships between the variables over an eight-year period (2015-2022), utilizing secondary data sourced from annual reports. Panel Data Analysis is the primary method used for data analysis, supported by descriptive statistics and correlation matrices. The findings reveal a negative and insignificant relationship between discretionary accrual management, real earnings management, income smoothing, tax avoidance, and corporate failure in Nigeria. These results suggest that the examined creative accounting practices do not significantly influence corporate failure among the sampled companies during the study period.