Creative Accounting: Nature, Incidence and Ethical Issues

UPF Working Paper No. 749

19 Pages Posted: 12 Jul 2004

See all articles by Oriol Amat

Oriol Amat

Universitat Pompeu Fabra - Faculty of Economic and Business Sciences

Catherine Gowthorpe

Oxford Brookes University - Business School

Date Written: April 2004

Abstract

This paper explores the nature and incidence of creative accounting practices within the context of ethical considerations. It explores several definitions of creative accounting and the potential and the range of reasons for a company's directors to engage in creative accounting. Later the paper considers the various ways in which creative accounting can be undertaken and summarizes some empirical research on the nature and incidence of creative accounting. The ethical dimension of creative accounting is discussed, drawing evidence from several empirical studies. The paper concludes with the analysis of possible solutions for the creative accounting problem.

Keywords: Accounting ethics, creative accounting, earnings management, financial reporting

JEL Classification: M41, M43

Suggested Citation

Amat, Oriol and Gowthorpe, Catherine, Creative Accounting: Nature, Incidence and Ethical Issues (April 2004). UPF Working Paper No. 749, Available at SSRN: https://ssrn.com/abstract=563364 or http://dx.doi.org/10.2139/ssrn.563364

Oriol Amat (Contact Author)

Universitat Pompeu Fabra - Faculty of Economic and Business Sciences ( email )

Ramon Trias Fargas 25-27
Barcelona, 08005
Spain
+34 93 542 16 55 (Phone)
+34 93 542 17 46 (Fax)

Catherine Gowthorpe

Oxford Brookes University - Business School ( email )

Oxford, OX33 1HX
United Kingdom
01865 485981 (Phone)

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