ABSTRACT
The purpose of this study is to examine creative accounting and likelihood corporate failures in Nigeria. Specifically, the study examined the effect of discretionary accrual management, real actual earnings management, income smoothing, tax avoidance and likelihood of corporate failure among listed companies in Nigeria.
A multiple regression estimation approach was employed on information extracted from a sample consisting of forty (40) companies quoted in Nigerian Exchange Group (NGX) between the years 2015 to 2022. Panel Least Square (PLS) regression technique was employed in estimating the data and testing the formulated hypotheses.
The findings revealed that there is a negative and insignificant relationship between discretionary accrual management, real actual earnings management, income smoothing, tax avoidance and likelihood of corporate failure of quoted companies in Nigeria. In line with the findings, the study recommends that the management of quoted companies should not succumb to pressure from investors and financial analysts to show positive earning or increase in earnings, despite the fact that the study finding showed a negative and insignificant relationship between discretionary accrual management and likelihood of corporate failure.
