The prevalence of corporate failures and accounting scandals, exemplified by Enron and WorldCom in 2002, alongside global financial crises, has highlighted the significant impact of financial statement manipulations on organizational stability. In Nigeria, the banking sector has similarly experienced corporate collapses, including Cooperative and Commerce Bank (CCB), Orient Bank, and African Continental Bank (ACB), largely due to accounting-related frauds. These events prompted the establishment of the Asset Management Corporation of Nigeria (AMCON) to mitigate corporate failures by acquiring and managing financially distressed banks. This study examines the causes and consequences of accounting manipulations in the Nigerian banking sector and evaluates institutional responses aimed at preventing systemic failures
Emmanuel Obiora Chukwudi (Tue,) studied this question.