A financial numbers game: The effects of corporate governance to the practice of creative accounting for publicly listed industrial and service sector companies of the Philippines
Accounting can be inferred as science and art colliding to produce the information. This assumption gives accounting professionals a freedom to foster their creativity in producing financial information as long as it is in compliance with the standards. According to Mulford and Comiskey (2002), the...
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| Main Authors: | , , , |
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| Format: | text |
| Language: | English |
| Published: |
Animo Repository
2016
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| Subjects: | |
| Online Access: | https://animorepository.dlsu.edu.ph/etd_bachelors/6757 |
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| Institution: | De La Salle University |
| Language: | English |
| Summary: | Accounting can be inferred as science and art colliding to produce the information. This assumption gives accounting professionals a freedom to foster their creativity in producing financial information as long as it is in compliance with the standards. According to Mulford and Comiskey (2002), the practice of creative accounting includes the aggressive choice and application of accounting principles, both within and beyond the boundaries of GAAP. Different accounting scandals paved the way for the need of regulation and governance. Numerous studies were conducted as to how the concept of creative accounting can be restrained through the practice of corporate governance. Given the increasing importance of corporate governance regulations in the Philippines, this thesis attempts to provide an in-depth analysis of the factors of corporate governance and how effective it is to mitigate the practice of creative accounting in the Philippines. Using the financial statements of publicly listed companies of service and industrial sector, and the Beinish model, the findings suggest that there is no significant effect on the overall corporate governance guidelines to the practice of creative accounting. Further studies recommend emphasizing the tone at the top of organizations, looking at other sectors or industries, expansion of the study to other countries or regions, and examining other variables that might be able to explain the motivation for creative accounting practices. |
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