ABSTRACT

The study investigated the effect of creative accounting on corporate performance. The major objectives of the study were to determine whether there is any relationship between creative accounting and profitability of firms, to investigate the relationship between creative accounting and market shares of the banks and to examine the effect of regulatory flexibility on creative accounting practices.   To achieve the objectives of the study,survey research design was adopted. The researcher adopted primary data in getting the required information. In testing the hypotheses,t-statistics were used. The findings revealed that creative accounting practices affected the quality of financial reports. The findings further revealed that the practice of creative accounting is ethically dubious and significantly influences both accounting policy choice and manipulation of transaction of financial reporting.  The researcher recommends that the adoption of one set of global financial reporting known as the International   Financial  Reporting  Standard  (JFRS) must be embraced by all operators affirms those performing accounting duty. Thereisanurgentneed for monitoring to commence in order to raise the quality of financial report globally. Accounting malpractice can destroy any institution, there is the need to restore integrity and public confidence on financial reporting. The accountants should be strengthened to scrutinize the actions of corrupt individuals and their malpractice in the world of business and impose sanctions on offenders.