Select Currency
Translate this page

EFFECT OF CREATIVE ACCOUNTING ON STAKEHOLDER’S WEALTH

Format: MS WORD  |  Chapter: 1-5  |  Pages: 55  |  4260 Users found this project useful  |  Price NGN5,000

  DOWNLOAD THE FULL PROJECT

EFFECT OF CREATIVE ACCOUNTING ON STAKEHOLDER’S WEALTH

 

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND TO THE STUDY

The current business environment and even more economic recession, have in recent times pushed the top management of many organizations into paying attention to how to make the financial statements of their organizations look better in order to attract investors by manipulating figures in their financial statement either by increasing or decreasing the figures depending on what they want to achieve at the moment using aggressive or creative accounting otherwise known as financial statement fraud (Anumaka, 2007). In recent times, fraud has been discovered to pose a big threat on organizations. It is a big risk which can incur a very big cost leading to a lot of problems of which on other problem s is loss of confidence of shareholders and the public. This research tries to find solution to financial statement fraud. Another area which the research work will focus on is ‘’auditor involvement in solving creative accounting problems. The researcher will also look into corporate governance as a tool in fraud detection and prevention. According to Osisioma and Enahoro (2006), accounting processes and choice of policies resulting from many judgments at the same time are capable of manipulation, which have resulted in creative accounting. The differences which are observed in financial reporting are legitimately prepared from choice of varied accounting polices of the same organization for the same period, has brought about challenges of credibility to accounting (finically statements and reporting).

1.2 STATEMENT OF THE PROBLEM

Creative accounting and earning management are euphemisms for accounting practices that tend to circumvent, albeit, cleverly, or manipulate the rules of standard accounting practices or the spirit of those values. They are characterized by dubious complications and use of ‘novel’ ways of presenting income, assets or liabilities. There are many reports of price manipulation, profit overstatement, and accounts falsification by some dubious stewards which rendered the financial reporting ineffective. The business failures of the past decade however, have been closely associated with corporate governance failure which involves a number of parties, management board of directors, auditors and some investors (Ezeani, 2010). Most business organizations have always been connected with fraud and have always been affected by financial collapses. Recently, accounting scandals like Enran, World Com, Parmalat, Tyco, etc. have cost not only billions of dollarsto the stakeholders but also have damaged the accounting profession as a result of financial mis-representation. Most of the standards set for the accounting (Audit) report have been eroded.

1.3 OBJECTIVES OF THE STUDY

The main aim of the study is to examine the effect of creative accounting on shareholders wealth. Specific objectives of the study are:

1. To establish the relationship between creative accounting and shareholders wealth.

2. To ascertain whether creative accounting practices significantly affect shareholders investment decisions.

3. To examine the effect of creative accounting on share prices of an organization and shareholders’ dividends.

4. To ascertain whether a well designed framework of accounting regulation will curb creative accounting practice in corporate financial reporting

1.4 RESEARCH QUESTIONS

In order to achieve the above research objectives for the paper, the following research questions will serve as guide:

1. What relationship exists between creative accounting and shareholders wealth?

2. Do creative accounting practices significantly affect shareholders investment decisions?

3. What effects do creative accounting have on share prices of an organization and shareholders’ dividends?

4. To what extent will a well designed framework of accounting regulation curb creative accounting practice in corporate financial reporting?

1.5 RESEARCH HYPOTHESIS

1. Ho: There is no significant relationship between creative accounting and shareholders wealth.

2. Ho: Creative accounting does not affect shareholders investment decisions.

3. Ho: There is no significant relationship between creative accounting and share prices of an organization.

1.6 SIGNIFICANCE OF THE STUDY

The study will be of great benefit to policy makers, management of various organizations, auditors, shareholders and student researchers. The study will enable managers have an in-depth understanding of the effects and costs of window dressing financial statements. It will also benefit investors, shareholders and the public who may resort to audited financial state of organizations to take investment decisions. It will also be readily available for academic consumption.

1.7 LIMITATIONS OF THE STUDY

The research study was carried out under a tight schedule. It was undertaken within a short time and was carried out intermittently with lectures and private studies. There was also a problem of data collection due to reluctance on the respondents to provide information on time.

1.8 DEFINITION OF TERMS

Creative Accounting: accounting practices that deviate from standard accounting practices.

Fraud: An intentional deception to cause a person to give up property or some legal right, which could also mean deceit trickery or cheating.

Financial Statement: A yearly book that contains summarized information of the firm’s affairs organized systematically.

Auditor: A person assigned to carry out an independent examination of evidence supporting the financial statement of an organization.

Shareholders Wealth: shareholder wealth is the collective wealth conferred on shareholders through their investment in a company

  DOWNLOAD THE FULL PROJECT

EFFECT OF CREATIVE ACCOUNTING ON STAKEHOLDER’S WEALTH

Not The Topic You Are Looking For?



For Quick Help Chat with Us Now!

+234 814 010 7220

+233 55 397 8005


HOW TO GET THE COMPLETE PROJECT ON EFFECT OF CREATIVE ACCOUNTING ON STAKEHOLDER’S WEALTH INSTANTLY

  • Click on the Download Button above.
  • Select any option to get the complete project immediately.
  • Chat with Our Instant Help Desk on +234 814 010 7220 for further assistance.
  • All projects on our website are well researched by professionals with high level of professionalism.

Here's what our amazing customers are saying

Emmanuel Essential
Kogi state University
I actually took the risk,you know first time stuff But i was suprised i received as requested. I love you guys 🌟 🌟 🌟 🌟
Very Good
Adam Alhassan Yakubu
UDS
Excellent work and delivery , I promise to share my testimonies everyone in need of this kind of work. You're the best
Excellent
Gbadamosi Solomon Oluwabunmi
Lasu
Swift delivery within 9 minutes of payment. Thank you project master
Excellent
Musa From Ahmadu Bello University
Thank you iprojectmaster for saving my life, please keep it up and may God continue to bless you people.
Excellent
MATTHEW NGBEDE
Ahmadu Bello University
I wish I knew you guys when I wrote my first degree project, it took so much time and effort then. Now, with just a click of a button, I got my complete project in less than 15 minutes. You guys are too amazing!
Excellent
Oluchi From Michael Opara University
If you are a student and you have not used iprojectmaster materials, you are missing big time! iprojectmaster is the BEST
Excellent
Stancy M
Abia State University, Uturu
I did not see my project topic on your website so I decided to call your customer care number, the attention I got was epic! I got help from the beginning to the end of my project in just 3 days, they even taught me how to defend my project and I got a 'B' at the end. Thank you so much iprojectmaster, infact, I owe my graduating well today to you guys...
Excellent
Merry From BSU
I am now a graduate because of iprojectmaster.com, God Bless you guys for me.
Excellent
Abdulrazak Bello Marsha
Usman Dan fodio University
It was quite a better guide for project and paper presentation purpoting. Many thanks.
Average
Dau Mohammed Kabiru
Kaduna State College of Education Gidan Waya
This is my first time..Your service is superb. But because I was pressed for time, I became jittery when I did not receive feedbackd. I will do more business with you and I will recommend you to my friends. Thank you.
Very Good

FREQUENTLY ASKED QUESTIONS

How do I get this complete project on EFFECT OF CREATIVE ACCOUNTING ON STAKEHOLDER’S WEALTH?

Simply click on the Download button above and follow the procedure stated.

I have a fresh topic that is not on your website. How do I go about it?

How fast can I get this complete project on EFFECT OF CREATIVE ACCOUNTING ON STAKEHOLDER’S WEALTH?

Within 15 minutes if you want this exact project topic without adjustment

Is it a complete research project or just materials?

It is a Complete Research Project i.e Chapters 1-5, Abstract, Table of Contents, Full References, Questionnaires / Secondary Data

What if I want to change the case study for EFFECT OF CREATIVE ACCOUNTING ON STAKEHOLDER’S WEALTH, What do i do?

Chat with Our Instant Help Desk Now: +234 814 010 7220 and you will be responded to immediately

How will I get my complete project?

Your Complete Project Material will be sent to your Email Address in Ms Word document format

Can I get my Complete Project through WhatsApp?

Yes! We can send your Complete Research Project to your WhatsApp Number

What if my Project Supervisor made some changes to a topic i picked from your website?

Call Our Instant Help Desk Now: +234 814 010 7220 and you will be responded to immediately

Do you assist students with Assignment and Project Proposal?

Yes! Call Our Instant Help Desk Now: +234 814 010 7220 and you will be responded to immediately

What if i do not have any project topic idea at all?

Smiles! We've Got You Covered. Chat with us on WhatsApp Now to Get Instant Help: +234 814 010 7220

How can i trust this site?

We are well aware of fraudulent activities that have been happening on the internet. It is regrettable, but hopefully declining. However, we wish to reinstate to our esteemed clients that we are genuine and duly registered with the Corporate Affairs Commission as "PRIMEDGE TECHNOLOGY". This site runs on Secure Sockets Layer (SSL), therefore all transactions on this site are HIGHLY secure and safe!