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ACCOUNTING FLEXIBILITY AND PERFORMANCE OF MANUFACTURING FIRMS IN NIGERIA

Tamuno-Preye Victor Douglas
Published 19 April 2026
Vol. 14, No. 2 (2026)
pp. 13-25
CC BY 4.0
  1. 1
    Tamuno-Preye Victor Douglas
    Department of Accounting, Faculty of Administration and Management, Rivers State University, Nkpolu, Port Harcourt, Rivers State, Nigeria
    NG

This study examined the impact of creative accounting practices on the financial performance of manufacturing firms in Rivers State, with a focus on the dimensions of earnings management and window dressing, and their effects on profitability and liquidity. The study adopted a quantitative research design using an ex-post facto approach, and data were collected from the audited financial statements of thirty (30) manufacturing firms over a five-year period (2018–2022). Descriptive statistics, regression analysis, and ANOVA were employed to analyze the data using SPSS version 25. The findings reveal that both earnings management and window dressing have a significant positive effect on financial performance, indicating that firms employing these practices report higher short-term profitability and liquidity ratios. However, the study highlights that such practices may distort the true financial position of firms and creates information asymmetry for stakeholders. The results align with Agency Theory and Positive Accounting Theory, suggesting that managerial incentives and strategic responses to external pressures often drive creative accounting practices. Based on the findings, the study recommends strengthening corporate governance, enforcing ethical accounting standards, enhancing regulatory oversight, building capacity for accountants and auditors, and educating stakeholders on the potential risks of creative accounting. Implementing these recommendations will promote transparency, reliability, and sustainable financial performance in manufacturing firms

JournalInsurance and Financial Risk Journal
ISSN3065-0313
Volume / IssueVol. 14, No. 2 (2026)
Pages13-25
Published19 April 2026
DOI10.5281/zenodo.19692624
Access Open Access
LicenseCC BY 4.0 — reuse with attribution
PublisherKeith Publications
Douglas , T. (2026). ACCOUNTING FLEXIBILITY AND PERFORMANCE OF MANUFACTURING FIRMS IN NIGERIA. Insurance and Financial Risk Journal, Vol. 14 No. 2, pp. 13-25. DOI: https://doi.org/10.5281/zenodo.19692624

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