Journal of
Accounting and Taxation

  • Abbreviation: J. Account. Taxation
  • Language: English
  • ISSN: 2141-6664
  • DOI: 10.5897/JAT
  • Start Year: 2009
  • Published Articles: 125

Full Length Research Paper

Creative accounting and investment decision in listed manufacturing firms in Nigeria

SIYANBOLA Trimisiu Tunji
  • SIYANBOLA Trimisiu Tunji
  • Department of Accounting, School of Management Sciences, Babcock University, Ilisan- Remo, Ogun State, Nigeria.
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BENJAMIN, Rebecca Deborah
  • BENJAMIN, Rebecca Deborah
  • Department of Accounting, School of Management Sciences, Babcock University, Ilisan- Remo, Ogun State, Nigeria.
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AMUDA Motunronke Bintu
  • AMUDA Motunronke Bintu
  • Department of Accounting, School of Management Sciences, Babcock University, Ilisan- Remo, Ogun State, Nigeria.
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LLOYD Janet Flomo
  • LLOYD Janet Flomo
  • Department of Accounting, School of Management Sciences, Babcock University, Ilisan- Remo, Ogun State, Nigeria.
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  •  Received: 18 October 2019
  •  Published: 31 January 2020

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 benefits.
 
Key words: Creative accounting, investment decision, stakeholders’ interest.