Abstract
The main objective of the study is to identify and qualitatively investigate the links between the universe of accounting options, managerial decisions, creative accounting and irrational behaviour. We have recognised five different aspects affecting human decisions and which are likely to influence the behaviour of a future professional accountant or a manager. Masters students in accounting from three significant Romanian universities were questioned about their perception regarding creative accounting and were investigated about their personality traits. The results of our experimental study have shown that, according to the M.A. students in accounting, the risk aversion of individuals influences the expressions of the creative accounting phenomenon, but it is not correlated with the interest pursued by the managers in choosing accounting policies. Also, in their perception, the act of managerial decision-making in accounting is not influenced by the individual capacities of the decision-maker to take decisions. Respondents believe that the disposition effect is correlated with the choice of accounting policy to maximise or minimise the company’s income and that there is a link between the financial incentives granted by the managers to the accounting professionals in order to beautify the financial statements and the creative accounting practices.
Highlights
We have started our study from the paradoxical universe of Schwartz’s (2004) choices and his writings, Kahneman’s (2011) unmatched work and Ariely’s (2009, 2010) very interesting elements of irrationality, and we wanted to investigate the perception of masters students in Accounting on creative accounting, considering that they have reached the point when they become familiar with the world of options and strategies and sometimes making decisions under risk and uncertainty
Akerlof and Schiller (2010), who entered the psychological backstage of the way the economy works and described the role of animal spirits and were permanently interested in accounting as an image of economic reality, we initiated this study, which intends to capture a few correlations between accounting choices and options, the managerial decisions, and the... ‘animal spirits’
The majority of students answering the survey questions were women. Another variable characterising the sample of students from the demographical point of view is age, most students were within the age group 18–25; 98% of the M.A. students were under 35 years old
Summary
It responds differently depending on stimuli, the moment when an event or phenomenon occurs, the influences of external factors and not least the individual’s experience, level of education, prejudice and other factors related to individual personal development. We have started our study from the paradoxical universe of Schwartz’s (2004) choices and his writings, Kahneman’s (2011) unmatched work and Ariely’s (2009, 2010) very interesting elements of irrationality, and we wanted to investigate the perception of masters students in Accounting on creative accounting, considering that they have reached the point when they become familiar with the world of options and strategies and sometimes making decisions under risk and uncertainty. This article is only one possible approach to the study
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