Voodoo Accounting and Shareholders’ Wealth in Nigeria
Declining shareholders’ Wealth (SHW) has been a contemporary discussion globally. Studies have shown that voodoo accounting practices by management and poor audit quality have contributed to the collapse of firms and the expectation gap in shareholders’ wealth maximization. Voodoo accounting practice is the magical inflation of revenues by management to deceive the stakeholders. A dearth of voodoo accounting literature that combined the practices of big bath charges, cookie jar reserves, inventory valuations and revenue recognition timing on shareholders’ wealth in Nigeria. This study therefore examines the effect of voodoo accounting on shareholders’ wealth in Nigeria.
