Effect Of Unethical Accounting Practices On Organizational Performance In Nigeria.
Material type:
TextPublisher: Ibafo Department Of Accounting And Finance 2020Edition: Dr. Pius OnichaborDescription: xi,; 49p. tablesSubject(s): Social Science -- FinanceSummary: ABSTRACT
This study examined the effect of unethical accounting practices o organizational performance in Nigeria. Behaving ethically is necessary for transparent operations for an organization especially in its dealings with its employees, shareholders and investors and today, many organizations are faced with the problem of unethical accounting practices inherent in the system. The cases of Satyam Computers Ltd, Cardbury and Enron are sufficient proof of what an organization would do to increase it earnings and overall financial performance which has left many investors in debt, that is why it is important that organizations emulate ethical accounting practices and all that it represents.
The main objective of this study is to examine the effect of unethical accounting practices on organizational performance in Nigeria and to determine if there is a significant relationship between unethical accounting practices and organizational performance. The study examines this from 2014-2018, a period of five years the population size was 25 quoted companies in the food and beverage industry, using 20 quoted companies in the food and beverage industry, determined by judgemental sampling technique, the sample size represented 80% of the population of the study. Random sampling technique was used to select the twenty (20) quoted companies.
Secondary data was employed in this study and the data were obtained from the annual financial statements of the sampled quoted companies. The data needed for the study were manually collected as a panel data, 100 firm year observations were sufficient for the regression analysis.
Unethical accounting practice is the independent variable in this study. It was measured with the Beneish M Score model for detecting fraud in the financial statement. Regression results were presented in Tables 4.3 - 4.5. The regression output (Table 4.3) reveals that 94.4% of the variation in corporate performance can be explained by combination of unethical accounting practices, firm size and audit firm (R² = 0.944). Table 4.4 also shows that the fitness of the model is very good (F-value= 1021.205, sig=0.000). Regression coefficients are presented in Table 4.5. Standardized regression coefficient of unethical accounting practices is positive and significant (=0.234, t=5.223, sig=0.000). The result indicates that as corporate profitability increases, unethical accounting practices are likely to increase. In conclusion, the research showed that there is a significant relationship between unethical accounting practices and organizational performance.
KEYWORDS:Corporate Profitability, Firm Value, Market Performance, Organizational Performance, Unethical Accounting Practices.
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ABSTRACT
This study examined the effect of unethical accounting practices o organizational performance in Nigeria. Behaving ethically is necessary for transparent operations for an organization especially in its dealings with its employees, shareholders and investors and today, many organizations are faced with the problem of unethical accounting practices inherent in the system. The cases of Satyam Computers Ltd, Cardbury and Enron are sufficient proof of what an organization would do to increase it earnings and overall financial performance which has left many investors in debt, that is why it is important that organizations emulate ethical accounting practices and all that it represents.
The main objective of this study is to examine the effect of unethical accounting practices on organizational performance in Nigeria and to determine if there is a significant relationship between unethical accounting practices and organizational performance. The study examines this from 2014-2018, a period of five years the population size was 25 quoted companies in the food and beverage industry, using 20 quoted companies in the food and beverage industry, determined by judgemental sampling technique, the sample size represented 80% of the population of the study. Random sampling technique was used to select the twenty (20) quoted companies.
Secondary data was employed in this study and the data were obtained from the annual financial statements of the sampled quoted companies. The data needed for the study were manually collected as a panel data, 100 firm year observations were sufficient for the regression analysis.
Unethical accounting practice is the independent variable in this study. It was measured with the Beneish M Score model for detecting fraud in the financial statement. Regression results were presented in Tables 4.3 - 4.5. The regression output (Table 4.3) reveals that 94.4% of the variation in corporate performance can be explained by combination of unethical accounting practices, firm size and audit firm (R² = 0.944). Table 4.4 also shows that the fitness of the model is very good (F-value= 1021.205, sig=0.000). Regression coefficients are presented in Table 4.5. Standardized regression coefficient of unethical accounting practices is positive and significant (=0.234, t=5.223, sig=0.000). The result indicates that as corporate profitability increases, unethical accounting practices are likely to increase. In conclusion, the research showed that there is a significant relationship between unethical accounting practices and organizational performance.
KEYWORDS:Corporate Profitability, Firm Value, Market Performance, Organizational Performance, Unethical Accounting Practices.
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