Creative Accounting Related Practices Among Corporations Listed in Nairobi Securities Exchange in Kenya

Abstract

Creative accounting is influenced by a number of management accounting practices. The raison d'être for this study was to assess creative accounting related practices among listed on the Nairobi Securities Exchange (NSE) in Kenya. The study identified four major practices which were dominant in the literature reviewed. Systematic sampling method was applied in selecting the sample for the study. The research design used in this study was a cross sectional survey design which assessed data for the year 2014. Data was acquired through administering questionnaires and interviews to a sample of managers, accountants and internal auditors of companies publicly listed on the NSE. A sample of thirty nine out of a target population of sixty four Companies publicly listed was extracted from the Nairobi Securities Exchange website. Simple descriptive statistics were employed to establish the level of agreement or disagreement by respondents on the influence of the said practices on creative accounting. The results indicated the level of agreement by respondents on influence on creative accounting among the companies listed on the NSE for practices such as Managements compensation, contractual obligation, tax management and insider dealings.