DETERMINANTS OF CREATIVE ACCOUNTING AND FINANCIAL REPORTING QUALITY OF LISTED MICROCREDIT BANKS IN NIGERIA
Abstract
Abstract
Creative accounting is a practice that influences financial indicators by using accounting knowledge and rules that do not explicitly violate accounting policies, rules, and laws. This study investigated determinants of creative accounting and financial reporting quality of listed microcredit banks in Nigeria. The study adopted ownership structure and internal control as dimensions of measuring determinants of creative accounting, while relevance and faithful representation were used as measures of financial reporting quality. The study was anchored on ethical theory. The study adopted survey research design. The population of the study comprised ten (10) listed microcredit banks in Nigeria that are listed on the Nigerian Stock Exchange while the sample size consisted of eight (8) managers, accountants, and auditors selected from the listed microcredit banks in Rivers State. Simple random sampling was used to select the respondents. Structured questionnaire was the data collection instrument used. Frequencies, simple percentages and weighted mean scores were used to analyse the demographic data of the respondents and other items of the questionnaire while Pearson Product Moment Correlation was used to test the hypotheses. The finding showed that determinants of creative accounting had a significant positive relationship with financial reporting quality. Also, the findings showed that ownership structure has a positive and significant relationship with relevance and faithful representation of listed microcredit banks in Nigeria. The study recommended that the managerial team at the helm of affairs of listed microcredit banks should take responsibility of bad financial position of microcredit banks.
Keywords: Determinants of creative accounting, Financial reporting quality, Ownership structure, Internal control, Relevance, and Faithful representation
