Corporate governance, regulatory agency and creative accounting practices in Nigeria

Abstract

This paper deals with the impact of corporate governance and the regulatory activities of Nigerian Accounting Standards Boards (NASB) on creative accounting practices in Nigeria. A survey of the key players involved in financial reporting in Nigeria reveals that creative accounting practices exists in Nigeria. Using the linear regression analysis, it was found that both the corporate governance structure and the NASB's monitoring and enforcement of accounting standards have had insignificantly negative impact on creative accounting practices. Nevertheless the corporate governance tends to militate against creative accounting practices more than the policing by NASB. Therefore, it is recommended that the corporate governance mechanisms should be strengthened and the NASB should devise appropriate means and enlightenment, in addition to the sanctions and fines, for the elimination of creative accounting practices in Nigeria.