Abstract: This study examined the topical issue of corporate governance in the area of transparency in the preparation and presentation of financial statements to various stakeholders and the public at large. This is against frightening revelations that the financial statements of many corporate entities were mere cosmetics and far from showing a true and fair view of the real state of things. In particular, this study took a close look at the financial misrepresentation of Cadbury Nigeria and Enron United States of America. Cadbury Nigeria was discovered in 2006 to have overstated its accounts to the tune of 13 billion naira (85 million dollars). This resulted in the sacking of the Managing Director and the Finance Director of the company. The auditors of the company Akintola Williams Delliotte was also fined to the tune of 130,000$. Enrons case was that its purported growth from 10 billion dollars in the early 1990s to 101 billion dollars in 2002 was discovered to be mere cosmetics. Financial statements were tampered with to create a false or deceptive impression leading to its collapse and litigations against the key officers. The effect of lack of transparency in the corporate governance of both organizations was discussed in this study. Using a comparative analysis of their financial statements before the fraud was uncovered, the similarities and differences were highlighted with lessons for developing economies on how to ensure transparency in their corporate governance.
Muraina Abdullahi, Okpara Enyinna and Ahunanya Stella, 2010. Transparency in Corporate Governance: A Comparative Study of Enron, USA and Cadbury PLC, Nigeria. The Social Sciences, 5: 471-476.