Corporate Governance And Creative Accounting: Two Concepts Strongly Connected? Some Intersting Insights Highlighted By Constructing The Internal History Of A Literature

Abstract

Corporate governance is concerned with the relationships between a business's management and its board of directors, shareholders and lenders and its other stakeholders such as employees, customers, suppliers, and the community in which activates. The connection between this topic and creative accounting was debated in the literature since the latter occurrence is related to the weakness of the first. Our study offers interesting insights into this strong connection by examining the relevant ideas developed previously in the literature with the scope of understanding, reinterpreting and rediscovering from interesting points of view this association in our search for responsibility in the economic environment. By conducting this study we wanted to reinforce the role of literature analyst as an interpreter who contributes meaning to the present state of the art.

The Impact of Sustainable Financial Data Governance, Political Connections, and Creative Accounting Practices on Organizational Outcomes

“…Theses manipulations and distortions arise from corporate governance which connects the dots between corporations and their stakeholders, e.g., employees, customers, suppliers, community, board of directors, shareholders, lenders, etc. [43]. Similar arguments were echoed by researchers that corruption resulting from poor corporate governance can be associated with managerial misconduct, account, and financial reporting manipulation [44].…”

Corporate Governance, Regulatory Agency and Creative Accounting Practices in Nigeria

“…From a positive viewpoint, it may seem that creative accounting connotes invention of accounting principles and techniques to recognize changes in economic, social, political and also business environments and recognizes genuine changes in accounting practice. From a negative viewpoint, creative accounting means undesirable practices which assimilates unethical elements for attracting providers of the capital by presenting an misleading and deceptive state of a certain firm`s affairs (Vladu & Matis ,2010).Generally, creative accounting is badly treated, as a negative creation, designed to prepare the financial statements in order to respond managers' requirements regarding the company's financial position and performance. Therefore, the financial statements are rather misrepresentation of the company's performance than true reporting.…”

Practices and mechanisms to mitigate the negative effects of accountingbased earnings management: An empirical study from the professionals’ perspective

“…The change in accounting practices to report the company's real performance is not considered earnings management unless this change is substantiated to distort FI (Vladu and Matis, 2010). Regarding the acceptability of AEM, it varies from author to author, however, it is often perceived as reprehensible (Gowthorpe and Amat, 2005), because they have a fallacious effect (Knežević et al, 2012).…”