Abstract
In the past two decades, the world has witnessed an economic crisis and the collapse of major global companies. As example of these companies, the collapse of the US telecommunications company Worldcom in 2002, and the collapse of the largest energy companies in the United States, Enron, in 2001. The collapse of the world-renowned auditing firm Arthur Anderson to prove its involvement in the collapse of Enron, where the reasons for the collapse of these companies were found to be the low ethics of professionals and their use by some of the accounting practices known as creative accounting practices in order to create imaginary improve in their financial statement. Therefore, it was necessary to use modern accounting systems for management and control to reduce the practices and methods of the creative accounting, and help to protect the capital and the interests of all parties through the activation of transparency and accountability, and one of these accounting systems known as corporate governance and its tools.
Highlights
In the past two decades, the world has witnessed an economic crisis and the collapse of major global companies
3.2 Study variables This study aimed to verify the impact of corporate governance on the creative accounting in the Jordanian commercial banks practice tools, and the study consisted of the following variables: 3.2.1 The dependent variable: creative accounting practices It included the practice of Earnings management and income smoothing, each of which was measured as follows: 1- Earnings management: Earnings management is measured using (Modified Jones Model (1995)
4.1 Conclusions Based on the analysis of the study data and the hypothesis test, the study reached the following results: 1. The results of the main hypothesis test showed a statistically significant effect of the tools of corporate governance on practices of creative accounting, measured by the practice of earnings management in Jordanian commercial banks
Summary
In the past two decades, the world has witnessed an economic crisis and the collapse of major global companies. As example of these companies, the collapse of the US telecommunications company Worldcom in 2002, and the collapse of the largest energy companies in the United States, Enron, in 2001. It was necessary to use modern accounting systems for management and control to reduce the practices and methods of the creative accounting, and help to protect the capital and the interests of all parties through the activation of transparency and accountability, and one of these accounting systems known as corporate governance and its tools.
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