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

Ababneh, Tha’er Amjed Mahmoud; Ağa, Mehmet

doi:10.3390/su11205676

Cited by 20 publications

(25 citation statements)

References 55 publications

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“…(Renu and Sharma, 2020) The basis for effective fraud detection is knowledge of the most common methods by which fraud occurs. (Ababneh et al, 2019) More than 40% of cases were detected using tips, which is almost three times more cases than the method of the most common detection of fraudinternal audit. An internal audit revealed only 15% of cases.…”

Section: Resultsmentioning

confidence: 99%

Creative accounting as one of the global tools for detecting fraud in Europe

Poradova

2021

SHS Web Conf.

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Research background: The issue of fraud is a real and not an exceptional phenomenon in today’s global economies. Fraud arises in businesses at different levels and from different motivations. However, with the development of fraud, methods are also being developed to help detect such fraud. Therefore, the present paper focused on creative accounting as one of the global tools for detecting these scams. The present paper consists of four parts. The first part deals with the issue of creative accounting. The second part describes fraud techniques such as “windows dressing”, “off-balance-sheet financing” and “earnings management”. The third part of the article consists of an analysis of the development of fraud detection in Central and Western Europe. The third part also includes a discussion. The fourth part deals with the conclusions on the issue. Purpose of the article: describe the issue of creative accounting as one of the global tools for detecting fraud. One of the aims of this paper is also to analyse the development of fraud detection in Central and Western Europe. Methods: In the processing of the present paper, a descriptive method, analysis, mathematical and statistical methods, graphic methods, comparison and synthesis were used. Findings & Value added: provide an overview of the conditions for the creation of creative accounting, detection procedures, and the fight against creative accounting. The result of this article is a comprehensive view of the global frauds of Central and Western Europe.

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Section: Resultsmentioning

confidence: 99%

Creative accounting as one of the global tools for detecting fraud in Europe

Poradova

2021

SHS Web Conf.

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“…The first section: includes (4) items that measure the independent variable (corporate governance) by relying on the instructions of corporate governance for the listed companies for the year 2017 issued by the Jordan Securities Commission (Al-Rahahleh, 2017). The second section: includes (4) items that measure the dependent variable (creative accounting practices) based on the study of (Ababneh & Aga, 2019). The third section: it includes (4) items that measure the mediator variable (the quality of the external audit) based on the study of (Lin, Wang, & Chen, 2019).…”

Section: Methodsmentioning

confidence: 99%

The Mediating Effect of External Audit Quality on the Relationship Between Corporate Governance and Creative Accounting

Al-Olimat

Shbail

2020

IJFR

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The study aimed to examine the impact of corporate governance in limiting creative accounting practices mediating by the quality of external audits in Jordanian industrial public shareholding companies. The analysis in this research was to follow some of the analysis techniques namely; validity, reliability, and multiple regression were used in order to achieve the objectives of the study, The study population consisted of all Jordanian industrial public shareholding companies registered in the Amman Stock Exchange for the year 2019, and due to the large size of the study population, the researchers applied the s sample random technique representing the population where valid questionnaires reached statistical analysis (120) a questionnaire that included; financial managers and heads of accounting and audit departments. The study concluded that there is a statistically significant effect of the quality of external auditing and the principles of institutional governance in limiting creative accounting practices in Jordanian industrial companies, and in light of these results, the study recommended that industrial companies exploit the positive complementary relationship between the quality of external auditing and the principles of institutional governance to reach the common goal to reduce creative accounting practices.

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“…The International Accounting Standards Board (IASB) has acknowledged that the objective of FS is to provide useful information to stakeholders about the financial position and performance of the company. FS are records of financial operations of a company business (Paseková et al, 2019), the mirror of each company's business, and very important for decision-makers (Bhasin, 2016;Remenarić et al, 2018;Ababneh and Aga, 2019). IASB established the qualitative characteristics that determine the usefulness of FS in decision-making.…”

Section: Rq1 Do Companies Develop Aemp?mentioning

confidence: 99%

“…IASB established the qualitative characteristics that determine the usefulness of FS in decision-making. Thus, the quality of FS can influence the firms' transparency and the effectiveness of decisions (Ababneh and Aga, 2019). However, according to Remenarić et al (2018), AEM is considered "unethical since it doesn't meet the main objective of financial reporting-to present a fair and objective picture of the business."…”

Section: Rq1 Do Companies Develop Aemp?mentioning

confidence: 99%

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

Monteiro¹,

Accounting²

2021

Int. j. adv. appl. sci.

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Accounting conservatism and Accounting-based Earnings Management Practices (AEMP) introduce bias in financial information (FI), thereby influencing stakeholder behavior in the decision-making process. This study aims to analyze, from the certified accountants’ perspective, the AEMP in Portugal. Specifically, it analyses (1) the development of the AEMP and its impact on FI reporting, (2) the main hampered on its implementation, and (3) the need for the instruments and corporate governance mechanisms to mitigate the AEMP. Besides this research analyses (4) the relationship between the certified accountant’s characteristics (gender, age, professional experience, educational qualifications, and training area. To achieve the proposed objectives, we have used a quantitative methodological approach with a survey questionnaire, conducting an empirical study based on a sample of certified accountants. Based on a sample of 159 certified accountants, the results found that the majority of respondents indicate that Portuguese companies develop AEMP and that these practices have a negative and significant impact on the quality of financial statements (FS). Moreover, most certified accountants point out that is important to adopt measures that will prevent the abuse of AEMP and the main instruments for this are the establishments of more precise and concrete accounting standards and the application of the sanctions. The results also indicate that the audit committee and efficient internal control are corporate governance mechanisms AEMP able of mitigating the effects of the AEMP. Finally, the individual characteristics of certified accountants, such as professional experience, educational qualifications, and training area, significantly influence their perception of the need to mitigate the AEMP. This study presents relevant contributions to theory and practice. First, it develops the literature that evaluates AEMP, particularly in Portugal, where studies are scarce. Second, this study is original because it considers the relationship characteristics of accounting and AEMP professionals. Third, it allows entities that operate in accounting standardization and for accountants and FI users to have a more in-depth knowledge of the AEMP’s instruments and mechanisms.

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

Cited by 20 publications

References 55 publications

Creative accounting as one of the global tools for detecting fraud in Europe

Creative accounting as one of the global tools for detecting fraud in Europe

The Mediating Effect of External Audit Quality on the Relationship Between Corporate Governance and Creative Accounting

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

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