Understanding And Explaining The Underpinnings of Creative Accounting in Nigeria: The Cadbury Evidence
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Certified National Accountant
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The rapid decline in public and investors’ confidence in the management of public quoted companies as a result of reported
widespread incidence of ‘widow dressing’, ‘aggressive accounting’or ‘creative accounting’has triggered the need to explore the rationale for
such practice. Using Cadbury Nig Plc as a case in point, it is posited in this paper that favorable stock prices tend to give the impression of
stability and sustained improvement which in turn, propel to embark on creative accounting in the bid to attract and retain the confidence of
shareholders. Arguably, these reasons are offset or nullified by the dangers creative accounting can pose to companies and indeed, the
economy. The findings and recommendations of this paper have implications for investors, directors, and policy-makers in Nigeria
Keywords
HF Commerce, HF5601 Accounting