FINANCIAL ACCOUNTING THEORY AND PRACTICES AND CORPORATE GOVERNANCE IN NIGERIA

Abstract
The project examines the link between financial accounting and corporate governance in Nigeria. The study main objective is to reveal the relevance of financial accounting theory and corporate governance or corporate performance. This work explains the level of compliance of firms to government regulation as it affects their governance practices. The primary source of data collection was used in gathering data from respondents. A structured questionnaire was designed by the researcher which was used to capture the relationship between corporate governance and financial accounting. The study concludes that accounting researchers should move beyond thinking about accounting information as providing a high degree of influence over the government practices of firms. Based on the findings, the study recommends that accounting information should be well structured and unique so that it can be useful in specific governance mechanism.

CHAPTER ONE
INTRODUCTION
Background to the Study
Corporate governance has been recognized and receiving a lot of attention in recent times. Corporate governance is not a new issue and has evolved with the growth of capitalist and the development of world economics. Corporate governance is concerned with overall polices, control, laws and numbs by which a corporation is directed, administered, control for the general interest of the shareholders.It aimed at understanding the dynamics or system put in place for the main objective to achieving corporate goals and recognition. These systems are currently refers to as mechanism of corporate governance. The way and manner a corporate entity is been governed and directed is determined by several factors of success and growth.
According to Chatu (1999), in a brief note address at the economics of Asian crisis and corporate economics government reforms 1999, (even the strongest economics lacking transparent transformation and control, responsible corporate board and good directors and shareholders right can collapse quite quickly as investor confident collapses. Thus, replying that there is a need for the understanding and implementation of good corporate governance practices and procedures.At it broadest, corporate governance encompasses the framework of rules, regulation, relationship, systems and procedure within and by which judicious authority is exercised and governed in corporation (Wikipedia Root, 2006). Corporation practices should be made in such a way as to optimized result. Corporate governance has evolved as a result of the separation on ownership from management of corporation, enterprise and including some partnership ventures. This has called for the need to protect the image and interest of shareholders and their nonparticipating share holders of corporation.
Sheifer and Vishny (1998) were of the opinion that management and equity investors should be capable of going into a binding contract, which could ensure that investors and shareholders interest are fully guided and represented. The relationship between owners and managers of business entities is considered as principal agency relationship (Oyajide & Soyibo, 2001, p.2), according to them, the principal agency literature suggested that hired manager will not have the same objective, role and profile as the private investor (owners). Rather, they will use the firm specific rent to satisfy their own desired objectives and interest. This has resulted in the development of various governance codes and method and other regulated agencies to protect the interest of shareholders and enhance effective governance.

Statement of Problem
Corporate governance is a multi-connected area of study. An important aspect of which deal with accountability, fiduciary duty and dynamics of auditing and control recently. There has been a considerable interest in the corporate governance practices and performance of most modern corporation and entities, especially since the high profile collapses of firm as Enron Corporation which shock the entire economy of the United States (Wikipedia 2008) this has raised so many eye brows as to the governance in most organizational setting and its effect on corporate performance and the entire economy.

Research Questions
The research provides the following questions to guide the objectives of the study.
1.     What is the relevance of financial account information in corporate governance via – corporate performance?
2.     Of what role is the government and other self regulating in corporate governance of firm and companies?
3.     Is accounting conservation having an importance in a well functioning corporate governance practices and ethics?
4.     Is there any relationship between the way a particular firm is directed and the firm’s performance?

1.4   Objectives of the Study
Based on the above problem, the purpose of the research work among others thing is to:
1.     To ascertain the relevance of financial accounting in corporate governance vis-à-vis corporate performance
2.     To elaborate the role of government and other self regulated body in corporate governance of firms and companies.
3.     To determine whether accounting conservation have importance in a well functioning corporate governance.
4.     To ascertain if there is any relationship between the way a particular firm is directed and the firm’s performance.

   Statement of Hypotheses
Hypothesis One Ho:  The firm’s performance is not directly dependent on its accounting practices.
HI:    The firm’s performance is directly dependent on its accounting practices.
Hypothesis Two Ho: There is no significant difference between corporate governance of firms and their performance.
HI:    There is significant difference between corporate governance of firms and their performance.
Hypothesis Three Ho:  Company policies are not for the best interest of its stakeholder.
HI:    Company policies are for the best interest of its stakeholder.
Hypothesis Four Ho: Government regulations are inadequate in terms of its influence on corporate governance practices of corporation in Nigeria.
HI:    Government regulations are adequate in terms of its influence in corporate governance in Nigeria.

 Significance of the Study
Corporate governance is one of the essential components of building and healthy investment climate and boosting investor confidence. Effective corporate governance is no longer desirable but rather mandated as transparency and consistency enforcement has been recognized as a key player to increasing investment in the business world. As the researcher attempts, there is a strong nexus between good corporate governance and increasing investment and economic growth in accounting. Countries that wish to reap the benefits of global capital market and companies that want to attract patient long term capital, must foster corporate and increasing investment and economic growth in accounting practices and aligned with well understanding investors’ rational international expectation. There is ample evidence that companies with well defined stakeholders right, solid control environment, high level of transparency and disclosure and an empowered board of directors, have no trouble attracting investors and lenders.
The following stand to benefit from the research:
1.     Researcher: Researcher in the field can make used of the research project. As it may serve as a guide for others interesting researchers in the future. There can also enhance or update the research work in time to come, bearing in mind that as a result of the broadness and dynamic to corporate governance. The researcher work will not expose all there is to known about corporate governance as it relate to financial accounting.
2.     The government: The research project will help governor and government to improve on present laws, reforms and regulations of its countries and it’s citizenry to corporation. This is by providing them current problems with corporate governance system in organization.
3.     Student: The researchers guide a general views and understanding of corporate governance. This will enhance the awareness and knowledge of student with regard to the concepts of good corporate governance.
4.     Shareholders/Business Financiers: As a result of the separation stakeholders influence from maximum control in modern organization, a practices of corporate governance is implemented on behalf of shareholders to reduced agency cost and information asymmetry (Wikipedia 2008).This separation of ownership from control has made it mandatory for owners of business (shareholder) to have an understanding to of organization is being manage and directed.
5.     The General Public: The researcher is beneficial to members of the public by providing them with an accurate understanding of the meaning, purpose and impact of effective corporate governance as it may deemed fit and how it affect firms in particular and the entire economy.

   Scope of the Study
This study examines the relevance of financial accounting information in corporate governance vis-à-vis corporate performance. The study explains the key areas through corporate governance and other self regulation in the corporation of firms and companies in Nigeria between 2008 – 2013.For the course of this study, the researcher used a high sample size of 80 for effective survey.The research is based on the survey of companies in Nigeria, selected for the purpose to the research following a non-probability sample process.

Limitation of the Study
In the course of this research, some problems were encountered which include the following:
1.   Insufficient books in the library limited the effort of the researcher in carrying out an in-depth research on the project work.
2.   Another limitation is that some of the information or answers given in the questionnaire are incomplete.
3.   Also, long distance or appropriate place of interest to obtain relevant information was a problem encountered.

Definition of Terms
1.   Corporate Governance: This is the way in which companies are directed and controlled.
2.   Management: This is the decision makers in an organization and they also give direction that lead to be adhered to.
3.   Stakeholders: These are individuals or groups of people who have financial and economic interest in any organization.
4.   Shareholders: These are the owners of the company. They try as much as possible to protect the ongoing concern on the company.
5.   Accounting: Accounting can be defined as a systematic identification of measuring, recording, classifying, summarizing, interpreting and communication of financial or economic information so as to enable the users of the information make informed judgement thereof.
6.   Integrity: This is required in order not to mislead those who will have belief in and rely on the audited financial statement of an organization.
7.   Auditing: This is a systematic process of objectively obtaining and evaluating evidence regarding the economic activity of an organization.
8.   Financial Statement: These are stewardship accounts rendered by directors who are professional managers to the members of a company.
9.   Accounting Information: These are financial records needed by directors and other accounting users to enable them know the financial position of the organization.
10. Forensic Accounting: This is the use of accounting skills to investigate fraud or embezzlement and to analyze financial information for use in legal proceedings.

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