IMPACT OF CREATIVE ACCOUNTING PRACTICES ON QUALITY OF FINANCIAL REPORTING OF LISTED NIGERIAN INDUSTRIAL GOODS COMPANIES IN NIGERIA

This study examined the relationship between creative accounting practices and the quality of financial reporting among listed Industrial Goods Companies in Nigeria. The study adopted an ex-post facto research design, using secondary data obtained from the published financial statements of nine industrial goods firms listed on the Nigerian Exchange Group over a five-year period (2018–2022). A purposive sampling technique was employed to select the firms, and multiple regression analysis was used to analyse the data collected. The findings revealed that creative accounting practices, particularly aggressive revenue recognition and improper capitalisation, significantly reduce the quality of financial reporting, leading to less transparent and less reliable disclosures. However, firm leverage showed no significant effect on financial reporting quality. Based on these findings, the study recommends that regulatory authorities strengthen the enforcement of accounting standards and ethical compliance, while companies should enhance internal control systems and corporate governance mechanisms to discourage manipulative accounting. Promoting transparency, integrity, and accountability in financial reporting will enhance stakeholders’ confidence and improve the credibility of corporate disclosures.