Title: Enterprise risk management disclosure and creative accounting practices: evidence from Nigeria

Authors: Erin Olayinka; Olojede Paul

Addresses: Department of Accounting, University of South Africa, Pretoria, 012, South Africa ' Department of Accounting, Covenant University, Ota, 231119, Nigeria

Abstract: This study investigates the impact of enterprise risk management (ERM) disclosure on creative accounting practices (CAP) of listed firms in Nigeria for the period of 2013-2018. With a sample of 120 firms in Nigeria, we drew insights from the contingency theory. The study used panel data with fixed effects regression analysis to analyse the dataset. The findings empirically revealed that ERM disclosure has a significant impact on the reduction of CAP. Our findings call for clear responsibility and a strong drive for ERM disclosure by corporate institutions in Nigeria and other emerging economies. The empirical approach used in this study emphasises the need for corporate organisations to embrace ERM practices and to integrate ERM information into their business strategies and operations. Our findings contribute to growing literature in the area of ERM disclosure, CAP, business ethics, and corporate transparency in Nigeria and by extension other Sub-Saharan African countries.

Keywords: board risk committee; cash-based earnings management; CAP; creative accounting practices; contingency theory; chief risk officer; enterprise risk management; Nigeria.

DOI: 10.1504/IJAAPE.2022.130393

International Journal of Accounting, Auditing and Performance Evaluation, 2022 Vol.18 No.3/4, pp.253 - 282

Received: 08 Jul 2020
Accepted: 01 May 2021
Published online: 19 Apr 2023 *

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