The impact of creative accounting methods on earnings per share

Al-Natsheh, Nancy; Al-Okdeh, Saleh

doi:10.5267/j.msl.2019.10.014

Cited by 7 publications

(3 citation statements)

References 3 publications

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“…Al-Natsheh and Al-Okhed define creative accounting as "some or all of the steps taken to play a game of financial information, which include the arbitrary choice of applying accounting principles and fraud in financial management and any other steps taken to make a profit, manage and balance income" [26].…”

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confidence: 99%

Creative accounting as a global tool for tax optimization

Blazek

2021

SHS Web of Conf.

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Research background: Creative accounting is a set of skills that allow people to produce an artistic, scientific or other creative activity that creates new, unusual and acceptable ideas, which are transformed into financial statements, which then form a positive view of the company’s economic activities. Purpose of the article: Creative accounting is a problem all over the world, as it adversely affects the financial statements in each country. The article describes models that help reveal the creativity of accountants and financiers. Procedures for identifying possible accounting delays are based on analytical models. In particular, it is complex statistical methods or data collection techniques that identify hidden, unusual patterns that indicate fraud. These analytical models are therefore used to detect various errors and fraud in accounting. Methods: Analytical models will be available to identify different methods of accounting abuse. Interest is placed on the analytical models of Beneish model and the Modified Jones model. The main objective of using these models is to reveal creative accounting in sector A - Agriculture, forestry and fishing. Fraud is investigated using sophisticated analytical methods that reveal improved data. Findings & Value added: Creative accounting in the conditions of the Slovak Republic but also globally is still not possible completely to reveal. The value added of this article can be mentioned as the benefit for potential business partners as well as investors interested in the analysed sector and the other hand for the other for the state administration.

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confidence: 99%

Creative accounting as a global tool for tax optimization

Blazek

2021

SHS Web of Conf.

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“…Previous studies examining fraud among companies that are listed on the ASE have confirmed the use of fraudulent methods, including income smoothing, earnings management, and FS fraud (Saleh et al 2021;Al-Natsheh and Al-Okdeh 2020;Alrjoub et al 2021;Al-Daoud et al 2023). The existence of such studies sheds light on the motives behind fraudulent practices and aids in efforts to combat and mitigate them effectively.…”

Section: Introductionmentioning

confidence: 90%

Predicting Risk of and Motives behind Fraud in Financial Statements of Jordanian Industrial Firms Using Hexagon Theory

Bader,

Abu Hajar,

Weshah

et al. 2024

JRFM

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This study intends to identify the motives that lead to increasing or fighting the fraud risk in the Financial Statements (FSs) of industrial companies whose shares are traded in regulated and unregulated markets at the Amman Stock Exchange (ASE) based on the Hexagon theory, which divides the motives for fraud into six factors. The study relied on secondary data to collect and measure the study variables by extracting them from the annual reports that were published by those companies on the website of the ASE during the period of 2012–2017. The collected data were analyzed using the logistic regression model on the SPSS program. The results confirmed that the return on assets (ROA), percentage of independent members in audit committees, and tone-related party transactions had a statistically significant relationship with predicted fraudulent FSs, where these three variables belong to pressure, opportunity, and collusion fraud motives, respectively. Thus, it is worth mentioning that this study is distinguished from previous studies that examined the issue of fraud in Jordanian companies by detecting the motives of fraud according to the Fraud Hexagon theory. Moreover, some of the fraud motives were measured using new variables such as a change in inventory, the age of auditing committee’s members, and tone-related party transactions.

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“…Creative accounting is a process or stage in a person's efforts to develop an idea by using that ability to manipulate a financial reporting [1][2][3][4]. Meanwhile, in the opinion of others creative accounting is to respond to the same problems faced by management, but the answer lies in the boundary between the legal record and de facto economic events, leaving accountants to create the economic reality of the entity [2]. One of the scandals of creative accounting practices occurred in Indonesia, one of which was a scandal owned by PT.…”

Section: Introductionmentioning

confidence: 99%

Professional Ethics and Ethical Orientation: Key to Preventing Creative Accounting Practices Among Accounting Students

Hermawan,

Nadiroh,

Rahmawati

et al. 2023

Advances in Social Science, Education and Humanities Research

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Creative accounting is still a pro and con in the field of accounting professional ethics. Therefore, professional ethics, ethical orientation, and emotional intelligence are needed to understand it. This study aims to determine the Effect of Knowledge of Professional Ethics in Accountants, Ethical Orientation, and Emotional Intelligence Towards Accounting Student Perceptions Regarding Creative Accounting Practices. This study uses quantitative research methods using statistical techniques to process existing data by proving the proposed research hypothesis. The sample of this study was accounting students from Muhammadiyah universities in Indonesia totaling 215 respondents. The result stated the accounting professional ethics knowledge and ethical orientation influences the accounting student perceptions of creative accounting practices, while emotional intelligence does not affect. The implication of this research is that students will have a good understanding of creative accounting and when working in the field of accounting will avoid creative accounting.

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The impact of creative accounting methods on earnings per share

Cited by 7 publications

References 3 publications

Creative accounting as a global tool for tax optimization

Creative accounting as a global tool for tax optimization

Predicting Risk of and Motives behind Fraud in Financial Statements of Jordanian Industrial Firms Using Hexagon Theory

Professional Ethics and Ethical Orientation: Key to Preventing Creative Accounting Practices Among Accounting Students

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