The art of accounting: Business students’ perspectives on the ethicality of the creative accounting practice

• Main Authors: Baldomero, Vincent Raven B., Chua, Monica Joyce S., Chua, Shermaine Kayle C.
• Format: text
• Language: English
• Published: Animo Repository 2022
• Subjects: Earnings management; Accounting—Moral and ethical aspects; Accounting; Business Law, Public Responsibility, and Ethics
• Online Access: https://animorepository.dlsu.edu.ph/etdb_acc/27; https://animorepository.dlsu.edu.ph/cgi/viewcontent.cgi?article=1067&context=etdb_acc
• Institution: De La Salle University

The evolution of the business industry entails innovation and adaptation to new techniques. While these practices can be an asset in attaining company goals, rules and principles concerning ethics may be compromised. On this note, it is important to look further into the ethicality of these business practices such as creative accounting. Since ethics is extremely crucial not only to one’s reputation but also to business relationships, it is important to assess the general perspective of future business professionals on the ethical acceptability of creative accounting practices. In line with this, the study aims to determine the perspective of business students, specifically undergraduate students of De La Salle University Ramon V. del Rosario College of Business (DLSU RVRCOB), on the ethicality of the creative accounting practice. Given this objective, the study would greatly benefit school-based organizations as this can be a tool in conceptualizing their activities that are heavily grounded in ethics. The data gathering process was done entirely online from March to April 2022 using Google Forms. Out of 5,825 DLSU RVRCOB students, a sample of 387 was selected. The gathered data were statistically analyzed through the use of various tests such as hypothesis testing, simple average, test of assumptions, simple linear regression, and multiple linear regression. The study shows that DLSU RVRCOB students collectively perceive creative accounting as an unethical practice, and that the determinants significantly influence the business students’ perspectives on the ethicality of creative accounting. Furthermore, gender, level of accounting knowledge, ethical sensitivity,machiavellianism, and management’s intention were also individually found to be significant. This implies that these variables affect how students perceive ethical situations. Based on these results, practical recommendations were made for student organizations, business students, business administrators and faculty members, standards and regulatory bodies, business entities, and academe and future researchers.