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Comparative Study of Creative Accounting and Financial Performance of Financial and Non-Financial Firms in Nigeria

Ezejiofor, Raymond A. and Eletta Solomon O.

Abstract

This study ascertained the effect of creative accounting practices on the Net Profit Margin of selected financial and non-financial firms. Ex-Post Facto research was employed. Data were extracted form annual reports and accounts of the samples financial and non-financial firms in Nigeria. Regression analysis was applied to test the hypothesis. The study there was a significant effect between discretionary accruals net profit margin of non-financial firms in Nigeria, while discretionary accruals has no significant effect between net profit margin of financial firms in Nigeria. Based on the findings, the study made the following recommended that RCN and SEC Nigeria should extend the bank-level disclosure and corporate governance code to non-financial listed firms. The mandatory audit committee financial expertise and limits on non-audit services will reduce discretionary accruals. Key words: Creative accounting practices, Net Profit Margin, Financial and Non-financial firms.

Keywords

Creative accounting practicesNet Profit MarginFinancial and Non-financial firms.

References

Adebayo, C. O., & Olanipekun, C. T. (2025). Creative accounting practices and financial performance of deposit money banks in Nigeria. FUOYE Journal of Accounting and Management Sciences, 8(1). Indriani, A. D., & Pujiono, P. (2021). Analysis of earnings management practices using the modified Jones model on the industry company index Kompas 100. The Indonesian Accounting Review, 11(1), 235 to 243. Healy, P. M., & Wahlen, J. M. (1999). A review of the earnings management literature and its implications for standard setting. Accounting Horizons, 13(4), 365 to 383. Kwaghvihi, A. W., Zayol, P. I., & Soomiyol, M. T. (2023). Effect of creative accounting practices on the profitability of listed industrial goods companies in Nigeria. African Journal of Business and Economic Development, 3(10), 46 to 63. Onah, V. C. (2023). Exploring the impact of creative accounting on financial reporting in Nigeria: An analysis of the techniques, reasons and regulations. International Journal of Multidisciplinary Research and Growth Evaluation.

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