IDEAS home Printed from https://ideas.repec.org/a/bcp/journl/v8y2024i7p3336-3350.html
   My bibliography  Save this article

Stock Price and Firms Attributes of Listed Deposit Money Banks in Nigeria: The Intervening Role of Creative Accounting

Author

Listed:
  • Oboh, John Ogenyi

    (Department of Accounting University of Calabar, Cross River State, Nigeria.)

  • Animpuye Canice

    (Department of Accounting University of Calabar, Cross River State, Nigeria.)

  • Odama Patrick Ojeka

    (Department of Accounting University of Calabar, Cross River State, Nigeria.)

Abstract

The study examined the intervening role of creative accounting on the relationship between stock price and firms’ attributes of commercial banks in Nigeria. The study adopted the ex-post facto research design and measured creative accounting using the working capital accruals in Dechow and Dichev model. The data collected from eight years annual financial statements of fourteen commercial banks listed on the Nigerian Stock Exchange were analysed and the model estimated using panel data regression. The study results show that firm’s growth had significant effect on stock price, while firms’ size is not statistically significant. The result of the intervening role of creative accounting shows that creative accounting has no significant relationship with firm’s size but creative accounting partially mediates the direct effect between firms’ size and stock price. The study concluded that the quest for growth can engender creative accounting practices. The study recommended that regulatory authorities and stakeholders should constantly examine the financial statements of commercial banks to ensure that there are no systematic misrepresentation of the true income and assets of the banks.

Suggested Citation

  • Oboh, John Ogenyi & Animpuye Canice & Odama Patrick Ojeka, 2024. "Stock Price and Firms Attributes of Listed Deposit Money Banks in Nigeria: The Intervening Role of Creative Accounting," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(7), pages 3336-3350, July.
  • Handle: RePEc:bcp:journl:v:8:y:2024:i:7:p:3336-3350
    as

    Download full text from publisher

    File URL: https://www.rsisinternational.org/journals/ijriss/Digital-Library/volume-8-issue-7/3336-3350.pdf
    Download Restriction: no

    File URL: https://rsisinternational.org/journals/ijriss/articles/stock-price-and-firms-attributes-of-listed-deposit-money-banks-in-nigeria-the-intervening-role-of-creative-accounting/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Naser, Kamal & Pendlebury, Maurice, 1992. "A note on the use of creative accounting," The British Accounting Review, Elsevier, vol. 24(2), pages 111-118.
    2. Dechow, Patricia M. & Sloan, Richard G., 1991. "Executive incentives and the horizon problem : An empirical investigation," Journal of Accounting and Economics, Elsevier, vol. 14(1), pages 51-89, March.
    3. Jensen, Michael C. & Meckling, William H., 1976. "Theory of the firm: Managerial behavior, agency costs and ownership structure," Journal of Financial Economics, Elsevier, vol. 3(4), pages 305-360, October.
    4. Dechow, Patricia M., 1994. "Accounting earnings and cash flows as measures of firm performance : The role of accounting accruals," Journal of Accounting and Economics, Elsevier, vol. 18(1), pages 3-42, July.
    5. Jonathan A. Okunbor & Amos O. Arowoshegbe, 2014. "Stakeholders’ Perception of the Implementation of International Financial Reporting Standards (IFRS) in Nigeria," Accounting and Finance Research, Sciedu Press, vol. 3(1), pages 1-67, February.
    6. Ross, Stephen A, 1973. "The Economic Theory of Agency: The Principal's Problem," American Economic Review, American Economic Association, vol. 63(2), pages 134-139, May.
    7. John Hillier & Michael McCrae, 1998. "The Earnings Smoothing Potential of Systematic Depreciation," Abacus, Accounting Foundation, University of Sydney, vol. 34(1), pages 75-91, March.
    8. Khaled Hussainey & Chijoke Oscar Mgbame & Aruoriwo M. Chijoke‐Mgbame, 2011. "Dividend policy and share price volatility: UK evidence," Journal of Risk Finance, Emerald Group Publishing Limited, vol. 12(1), pages 57-68, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Xin Qu & Majella Percy & Fang Hu & Jenny Stewart, 2022. "Can CEO equity‐based compensation limit investment‐related agency problems?," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 62(2), pages 2579-2614, June.
    2. Zhijun Lin & Ming Liu & Carlos Noronha, 2016. "The Impact of Corporate Governance on Informative Earnings Management in the Chinese Market," Abacus, Accounting Foundation, University of Sydney, vol. 52(3), pages 568-609, September.
    3. Diogo Batista da SIlva & António Cerqueira & Elísio Brandão, 2017. "Earnings Management Dynamics in Portuguese Listed Firms," FEP Working Papers 587, Universidade do Porto, Faculdade de Economia do Porto.
    4. Thierry Poulain-Rehm, 2003. "Stock-options, décisions financières des dirigeants et création de valeur de l'entreprise:le cas français," Revue Finance Contrôle Stratégie, revues.org, vol. 6(3), pages 79-116, September.
    5. Wajdi Affes & Anis Jarboui, 2023. "The impact of corporate governance on financial performance: a cross-sector study," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 20(4), pages 374-394, December.
    6. Shawn X. Huang & Sami Keskek & Juan Manuel Sanchez, 2022. "Investor Sentiment and Stock Option Vesting Terms," Management Science, INFORMS, vol. 68(1), pages 773-795, January.
    7. Dechow, Patricia & Ge, Weili & Schrand, Catherine, 2010. "Understanding earnings quality: A review of the proxies, their determinants and their consequences," Journal of Accounting and Economics, Elsevier, vol. 50(2-3), pages 344-401, December.
    8. repec:eee:labchp:v:3:y:1999:i:pb:p:2485-2563 is not listed on IDEAS
    9. Kou, Zonglai & Tang, Yue & Wu, Hong & Zhou, Min, 2023. "Ownership, volatility, and equity incentives: Theory and evidence from listed companies in China," Economic Modelling, Elsevier, vol. 128(C).
    10. Vanessa Carvalho Pereira & Antonio Gualberto Pereira & José Sérgio Casé Oliveira, 2023. "Influence of ownership structure on the choice of Big Four independent auditors," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 20(3), pages 316-326, September.
    11. Kirathimo Muruga & Tatjana Vasiljeva, 2021. "Physicians' Dual Practice: A Theoretical Approach," Central European Business Review, Prague University of Economics and Business, vol. 2021(5), pages 1-20.
    12. Adi Masli & Matthew G. Sherwood & Rajendra P. Srivastava, 2018. "Attributes and Structure of an Effective Board of Directors: A Theoretical Investigation," Abacus, Accounting Foundation, University of Sydney, vol. 54(4), pages 485-523, December.
    13. Sheikh, Shahbaz, 2018. "The impact of market competition on the relation between CEO power and firm innovation," Journal of Multinational Financial Management, Elsevier, vol. 44(C), pages 36-50.
    14. Ernest Dautovic, 2019. "Has Regulatory Capital Made Banks Safer? Skin in the Game vs Moral Hazard," Cahiers de Recherches Economiques du Département d'économie 19.03, Université de Lausanne, Faculté des HEC, Département d’économie.
    15. Usman, Ojonugwa & Uwadiegwu, Ihedioha O. & Olorunmolu, Joseph O., 2015. "Debt Financing and Post-Privatization Performance of Firms: The Case of Nigerian Listed Firms," MPRA Paper 74921, University Library of Munich, Germany, revised Jul 2016.
    16. Mehdi Bouras & Mohamed Imen Gallali, 2017. "Earnings Management, Equity-based Compensation, Economic Conjuncture and Governance Mechanisms: A Comparative Study between France and the United States," International Journal of Economics and Financial Issues, Econjournals, vol. 7(2), pages 585-600.
    17. Hau Lee & Seungjin Whang, 1999. "Decentralized Multi-Echelon Supply Chains: Incentives and Information," Management Science, INFORMS, vol. 45(5), pages 633-640, May.
    18. Robert E. Till & Mary Beth Yount, 2019. "Governance and Incentives: Is It Really All about the Money?," Journal of Business Ethics, Springer, vol. 159(3), pages 605-618, October.
    19. Eleftherios Kourtis & Georgios Kourtis & Panayiotis Curtis, 2019. "Αn Integrated Financial Ratio Analysis as a Navigation Compass through the Fraudulent Reporting Conundrum: Α Case Study," International Journal of Finance, Insurance and Risk Management, International Journal of Finance, Insurance and Risk Management, vol. 9(1-2), pages 3-20.
    20. Shleifer, Andrei & Vishny, Robert W, 1997. "A Survey of Corporate Governance," Journal of Finance, American Finance Association, vol. 52(2), pages 737-783, June.
    21. Kok, Seng Kiong & Shahgholian, Azar, 2023. "The impact of proximity within elite corporate networks on the Shariah governance-firm performance nexus: Evidence from the global Shariah elite," Emerging Markets Review, Elsevier, vol. 54(C).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bcp:journl:v:8:y:2024:i:7:p:3336-3350. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dr. Pawan Verma (email available below). General contact details of provider: https://rsisinternational.org/journals/ijriss/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.