Creative Accounting Practices and the Credibility of Financial Reports:
An Empirical Study on the Jordanian Commercial Banks
ABEER AL-KHOURY1, HUSNI AL- SHATTARAT2, RASHA ALGHAZZAWI3,
HOSSAM HADDAD2
1Department of Accounting,
Al-Ahliyya Amman University,
Amman,
JORDAN
2Department of Accounting,
Zarqa University,
Zarqa,
JORDAN
3Department of Accounting,
Princess Sumaya University for Technology,
Amman,
JORDAN
Abstract: - This study examines the impact of creative accounting practices on the credibility of financial
reports in Jordanian commercial banks. It highlights the use of innovative accounting techniques and
manipulative strategies employed by firms to present accounting information misleadingly, thereby influencing
the judgments of financial statement users. The research aims to investigate the influence of these practices on
the reliability of financial reporting in Jordanian commercial banks. A questionnaire was developed and
distributed to senior and middle management as well as workers in Jordanian commercial banks, with 51 usable
responses out of 80 participants. The findings reveal a negative impact of creative accounting practices on the
credibility of financial reports in Jordanian commercial banks. The study concludes by recommending that
regulatory bodies in Jordan adopt policies to detect and address creative accounting methods in financial
statements and develop deterrent laws with penalties and sanctions for those engaging in harmful techniques in
creative accounting.
Key-Words: – Creative accounting, Credibility, Income statement, Cash Flow statement, Jordan, Commercial
banks, Innovative Accounting, Financial Statement Users
Received: September 19, 2022. Revised: August 13, 2023. Accepted: September 12, 2023. Published: September 28, 2023.
1 Introduction
The primary role of an accountant is to prepare
financial statements that aid stakeholders and users
in making informed decisions by highlighting
changes in cash flows, financial position, and
financial performance, [1]. Financial statements are
unique to each company and are used to
communicate its operations to external interest
groups. These groups rely heavily on financial
statements to assess a company's financial position
and business success, [2]. Therefore, it is crucial
that the information presented in financial
statements is accurate and dependable to ensure
sound decision-making, [3].
In, [4], it suggests that users can effectively
perform decision-making by using financial
statements correctly. The financial statements must
be transparent, free of bias, comparable,
understandable, and reliable because the financial
decisions depend primarily on them, [5]. Currently,
to attract the most significant possible number of
investors and provide a distinctive business image,
companies have become more interested in
financial statements, [6]. There are a set of
challenges that companies face while trying to
achieve their goals due to the continuous
developments and changes in the business
environment, especially after the financial scandals
WSEAS TRANSACTIONS on COMPUTER RESEARCH
DOI: 10.37394/232018.2023.11.36
Abeer Al-Khoury, Husni Al- Shattarat,
Rasha Alghazzawi, Hossam Haddad
E-ISSN: 2415-1521
393
Volume 11, 2023
that were due to the weakness of the internal
control systems that happened to many large
companies around the world, [7].
The financial numbers game includes many
names. In this game, creative accounting is one of
the main labels, [8], [9]. Fraudulent financial
reporting, Income smoothing, Earnings
management, and Aggressive accounting represent
the other names, [1], [3], [9], [10]. The main
feature is the amendment of the financial
statements to give misleading information about the
company's performance, [11]. Managers in various
companies around the world resort to creative
accounting to outplay the investors, although most
of them will not admit their use of them [1], [8],
[10].
There are explicit expressions of accounting
practices that represent creative accounting, such as
those that attempt to manipulate the rules of
standard accounting practices, circumvent, if
intelligently, or the spirit of those values, [12].
These practices are characterized by using "novel"
methods to present liabilities, assets, or income and
have questionable complications, [10].
There are a large number of corporate
departments around the world trying to amend
financial statements to raise the financial situation,
whether in terms of the amount of profits or
financial strength to reach their personal goals, due
to the prevailing conditions in the business world,
[4]. Corporate departments use creative accounting
practices to access methods and arts to present
accounting information unrealistically but attract
investors because the economies of developing and
developed countries are going through difficult
economic conditions, [13]. This practice has led to
the unreliability of the accounting information and
affected the decisions taken by the users of these
financial statements, [14].
Two main accounting foundations provide the
groundwork for the preparation and development of
accounting standards which are the financial
accounting standard board [FASB] and the
international accounting standard board [IASB],
[12]. Therefore, in 1973, there was a primary goal
of the IASB to standardize international financial
reports, as the board developed and published
international accounting standards and encouraged
acknowledgment and recognition worldwide.
However, there are still loopholes despite providing
accounting standards, [15].
Therefore, the current paper examines creative
accounting practices and their impact on the
credibility of financial reports in Jordanian
commercial banks.
This study is expected to benefit many
stakeholders in commercial banks, such as
regulatory authorities, researchers, management,
auditors, financial analysts, and investors, and
determine ways of minimizing or eliminating
creative accounting in commercial banks.
Moreover, the present paper is an eye-opener to
creative accounting practices in Jordanian
commercial banks. It determines whether
commercial and central banks use specific methods
to monitor and ensure the credibility of financial
reports.
This paper consists of six sections. The
introduction informs the reader of the purpose of
the study in section one and the theoretical
background that follows in section two. Section
three introduces most related previous literature
and hypotheses development. Section four
describes the chosen method of the research. In
section five, the researcher will describe the
analysis results, and finally, in chapter six,
conclusions and recommendations are presented.
2 Theoretical Background
2.1 Accounting Ethics and Conceptual
Framework
The researchers, [16], indicated that the deceptive
practices at WorldCom and other corporations have
devastatingly affected the capital markets and
investors. The public also expects auditors and
accountants to be eager and involved participants in
the process if top management plays with numbers,
[17]. Reporting accurate company data is the
function of accountants, [18], [19], [20]. To ensure
that the information provided is trustworthy and
reliable, the auditors should re-evaluate the
financial statements, [21]. Different codes of ethics
decide on accountant management systems
developed by the accounting profession, [22], [23].
Compliance with the law to the fullest extent is one
of the code's requirements. All that is required
morally from the accountant is within these rules,
[24]. This is important for those who depend on the
profession's credibility, [21].
2.1.1 Definition of Creative Accounting
The process of adjusting company accounts to
provide the desired status of the company to the
shareholders and in the absence of specific criteria
called creative accounting, [2], also investors and
other stakeholders, as an accountant. To provide
rules of conduct and financial transactions,
resolving conflicts between competitive approaches
WSEAS TRANSACTIONS on COMPUTER RESEARCH
DOI: 10.37394/232018.2023.11.36
Abeer Al-Khoury, Husni Al- Shattarat,
Rasha Alghazzawi, Hossam Haddad
E-ISSN: 2415-1521
394
Volume 11, 2023
and judging issues are issues that the accounting
process deals with, [25], [26]. There is
misrepresentation, deception, and manipulation due
to this flexibility, [27]. The less conservative
components, called creativity accounting, as an
academic researcher conduct these practices and
conclude that creative accounting is improving with
the benefit of weakness in the existing legislation
or without a particular norm, [28]. According to,
[29], a method where accountants manipulate the
statistics in their financial statements and
commercial units' accounts using their own
expertise and accounting practices is the definition
of creative accounting. Also, the researchers, [26],
indicated how managers manipulate the financial
reporting statistics to obtain an accounting
variance, which is nothing but approximations
based on transactions and activities in this year.
The original starting point of the year under
examination represents creative accounting.
According to, [30], have defined it as transforming
financial accounting numbers from their actual
values by using the existing rules and ignoring
other accounting rules to the figures desired by the
preparers. The researchers, [31], clarified it as the
practices used by the management to present their
own favorite financial results image as the
successful manipulation of holes or ambiguities in
accounting law. Practices that follow the norms of
standard accounting practices but certainly deviate
from the spirit of those rules is creative accounting,
and it may be referred to as "earning management",
[25]. Creative accounting practices are not illegal
but immoral in terms of misguiding investors and
are different from fraudulent accounting practices
[2], [32], [33], [34].
2.1.2 Types of Creative Accounting Methods
The variation in the very creativity allows for a
variation in the motives for creative accounting, so
the accounting creativity function depends on
recognizing creative accounting policies, and the
reason for thinking and manipulating financial data
is a form of misleading art, [33]. Or the entrants or
the supervisory authorities as well, in the light of an
accountant with experience and knowledge of all
aspects of the manipulation process, [34]. Many
forms of creative accounting vary in style, despite
all agreeing to misleading financial statements to
serve the parties themselves in many ways, [35].
1. Aggressive Accounting.
Research from, [2], defined creative accounting as
the insistence on selecting and applying specific
accounting methods to achieve desirable goals after
which high profits can be reached whether these
established accounting practices are based on
current accounting principles.
2. Earnings Management
It is a manipulation of income to reach a previously
planned goal. That goal may have been determined
by the management, predicted by a financial
analyst, or be consistent with specific business
contexts, [35].
3. Income Smoothing
It is a work on moving income between different
periods, which includes reducing income in years
with good income for years with lousy income by
keeping it in the form of allocations for periods
with inadequate income, [22].
4. Fraudulent Financial Reporting
It is a deliberate statement of erroneous data or
works to delete specific values to mislead those
who use financial data, which is considered an
illegal and illegal act, [36].
In light of the preceding, creative accounting is
formed and determined according to the nature of
the goal to be achieved from the management side.
The practice of creative accounting requires the
existence of specific and specific specifications for
its need for a qualified, expert, knowledgeable, and
able to collect and analyze to be able to perform its
tricky task for the parties to the economic process
and to be against any accounting system Strong
may be exposed, [37].
The way of using fraudulent financial reporting
depending on the types of creative accounting
practice will be presented as follows, [22], [35],
[38]:
A. Amortization of written-off development
expenditure over the life of the asset of a
project:
Organizations can consume amortized written-off
development expenditure of assets only to transfer
the cost to the next few years to achieve the
required results. Administrators and departments
have recorded the life of assets, and hence long-
term assets have a long history of depreciation in
the accounting books, [39]. The desired results can
be achieved through judgments or estimations in
deciding on assets in creative accounting.
Managers who escape taxation can depreciate the
company's assets long-term, [40].
WSEAS TRANSACTIONS on COMPUTER RESEARCH
DOI: 10.37394/232018.2023.11.36
Abeer Al-Khoury, Husni Al- Shattarat,
Rasha Alghazzawi, Hossam Haddad
E-ISSN: 2415-1521
395
Volume 11, 2023
B. Sales and leaseback transactions:
The chances of creative accounting can increase
when a third party is involved in transactions as a
bank. As for, [41], suppose an arrangement is made
to sell an asset to a bank, then lease it back for the
rest of its useful life, then the price of such a "Sale
and Leaseback" can be higher or lower than the
market value, as the difference may be
compensated by higher or lower rentals, [42].
C. Choice in the timing of transactions:
Organizations can use their way to report revenues
or sales in ways that show investment returns that
were too low at historical rates, [43].
D. Transfer pricing methods in multinational
companies:
Organizations in different countries can shift their
profits to low-tax regime countries through tax
differentiation and advantages. Organizations are
free to specify the price transfer method; thus, high
price transfer in high tax regime units can be
implemented, [44]. In creative accounting, these
alternatives are significant.
It was critically recognized that choices of
accounting approaches are the primary explanation
for creative accounting. Companies use any of the
methods set out in the system according to their
convenience and under accounting standards, [40],
[45]. Also, organizations present a desired picture
of the company through choices in methods of
accounting which give them the legal right, [46].
Despite the likelihood that the information is
deceptive to stakeholders, the program permits
businesses to use any approach, [44]. Accounting
practices that seek to appear to cleverly bypass the
reality or circumvent rules of the spirit of those
principles or traditional accounting practices
represent Earning Management and Creative
Accounting, [39], [46]. The presentation of income
assets or liabilities can be described as questionable
complications and "novel" means, [4]. The
financial reporting becomes ineffective due to the
reports of some dubious stewards, such as account
falsification, profit overstatement, and price
manipulation, [47].
2.2 Conceptual Framework of Credibility of
Financial Reports
International standards define the credibility feature
as data free from material error and bias and
through which users can rely on it to represent it
honestly. The data must have several specifications
to gain the quality of credibility, the most important
of which is: that it is free from Physical error, to be
neutral and free from bias, to represent transactions
and events that are supposed to be represented
honestly, and to be complete so that they fall within
the framework of materialism and cost, [19], [48].
There is a close relationship between the concepts
of conservatism and credibility or reliability, [37],
[49]. The authors of accounting data have a certain
level of conservatism in the case of making
estimates and during their exercise of the imposed
judgments. It is necessary not to exaggerate the
statement of assets and income and work to reduce
the expense because the accounting data are
characterized as non-neutral or biased, [50].
Regarding credibility, the accounting data
should express essential data to increase the
understanding of who uses the information for the
events it expresses and the explanatory and
descriptive information, [28]. The credibility
feature in the accounting data adds service to those
who use the accounting information to help them
evaluate the available information. Due to the
difficulty of providing sufficient time and
experience for them to give judgment on the
accounting data, hence the accounting data must be
free from error and bias and be presented truthfully
and it derives from The credibility property of the
data has three primary sub-properties, [23], [32],
[51]:
1. Verifiability
This means that the accounting data is complete,
that is, it falls within a specific limit of materiality
and cost, and the necessity of taking into account
not to delete any part of the data that makes the
accounting data misleading, wrong, and dishonest,
[52]. In, [53], defined the verifiability feature as the
ability of those who use accounting information
and those who undertake the measurement process
by using measurement methods to reach results
similar to economic events and facts, [54].
2. Faithful Representation
Research from, [55], explained that the feature of
honesty in presentation is the process of
representing data for all operations and events that
should be expressed honestly, and this allows
accounting data to be described as credible and
reliable. Whereas, [56], defined her as meaning that
there is a congruence and agreement between the
resources and events that the numbers and
descriptions show and the same accounting
numbers and descriptions on the other hand.
3. Neutrality
This property is free of information from neutrality
and bias to be described as reliable and reliable
accounting data, [57]. From the point of view of,
[58], neutrality has been defined as accounting
WSEAS TRANSACTIONS on COMPUTER RESEARCH
DOI: 10.37394/232018.2023.11.36
Abeer Al-Khoury, Husni Al- Shattarat,
Rasha Alghazzawi, Hossam Haddad
E-ISSN: 2415-1521
396
Volume 11, 2023
information free of bias in a situation where there is
no readiness for financial statements to work to
provide the service to a specific party or entity at
the expense of the parties and remaining parties
who use the accounting information, or intending to
reach a specific goal.
2.2.1 Disclosure Credibility
The quality of company disclosures and the actual
reliability are difficult to evaluate due to the lack of
information necessary for investors, [59].
Consequently, the information content of the
disclosure, believability of company disclosures, or
credibility should be evaluated by investors, [60].
The researcher, [61], indicated that investors '
observations of credibility would play a role in
evaluating investors ' reactions to disclosures as
important as the information itself. Due to the
failures of companies that have affected investor
trust in financial reporting, it is particularly relevant
after SOX, [62].
To evaluate investor perceptions of disclosure
credibility, the researchers, [63], provided a
framework. The degree of external and internal
assurance is considered one of the most influential
factors in perceptions of disclosure credibility, [64].
According to, [52], the trust of investors in the
"trustworthiness of the display of measurement
results" and "competence and care of the
application of stated measurement methods" is the
reason for this impact. There are many studies,
[35], [59], [65], highlighting assurance that the
external auditor provides and a potential source of
information that may lend disclosure credibility is
the responsibility of the internal audit. Internal
auditors ' prominent role is detecting fraud and
preventing errors. The capacity to discover and
correct problems before they grow large is the
function of internal audit, [66].
3 Literature Review and Hypotheses
Development
Existing research highlights creative accounting
practices and how to impact the credibility of
financial reports. This chapter contains the most
related previous studies to the current study and
determines the gaps in the literature this study will
try to fill.
Some previous papers were empirical studies,
such as, [10], which aimed at finding how detecting
creative accounting practices is affected by
cognitive creativity in accounting among internal
auditors. Cognitive creativity in accounting,
measured by [creativity supports, creativity type,
and creativity resources] was utilized in this paper.
To reach the objective of the current paper, the
analytical descriptive analysis was adopted. The
community of this study consists of 128 Internal
Audit staff at each Jordanian public shareholding
industrial company. It was found that detecting
creative accounting practices is affected
statistically and positively by cognitive creativity in
accounting among Jordanian internal auditors
related to creativity supports, creativity type, and
creativity resources.
Another empirical study was, [67], which
examined how the credibility of financial reports is
affected by creative accounting practices. Creative
accounting practices measured by creative
accounting practices in the statement of cash flow,
creative accounting practices in the statement of
income, and creative accounting practices in the
statement of financial position were utilized in this
study. To reach the objective of the current paper,
the analytical descriptive analysis was adopted. The
community of this study consists of 147 internal
auditors, audit managers, accountants, and financial
managers in private commercial banks in Iraq. It
was found that the credibility of financial
statements is affected negatively and statistically by
creative accounting practices measured by creative
accounting practices in the statement of cash flow,
creative accounting practices in the statement of
income, and creative accounting practices in the
statement of financial position.
In the same line of research, the study by, [2],
explored how the credibility of accounting reports
is affected by creative accounting practices in
Nigeria. Creative accounting practices measured by
income smoothing and tax avoidance were utilized
in this study. To reach the objective of the current
paper, the analytical descriptive analysis was
adopted. The community of this study consists of,
80, accountants in banks and other enterprises with
parents' companies in Nigeria. It was found that the
credibility of accounting reports is affected
negatively and statistically by creative accounting
practices measured by income smoothing and tax
avoidance.
Moreover, it was found that many rules,
without appropriate checks, penalties, and
incentives, complement creative accounting in
providing the basis for inaccurate, superficial, and
unequal reporting. Another study, also in the
Nigerian context, found that the quality of financial
statements is affected negatively and statistically by
creative accounting practices measured by profit
smoothing and objectivity, unjustified changes in
WSEAS TRANSACTIONS on COMPUTER RESEARCH
DOI: 10.37394/232018.2023.11.36
Abeer Al-Khoury, Husni Al- Shattarat,
Rasha Alghazzawi, Hossam Haddad
E-ISSN: 2415-1521
397
Volume 11, 2023
accounting policies and estimates and
comparability, and aggressive earnings
management and relevance, [1]. In a similar
context, namely in Kenya, [25], found that financial
performance measured by earnings after tax is
affected negatively and statistically by creative
accounting practices. Also, the majority of firms
collapsed because of their misuse of it.
Other studies were conducted in the Middle
East, such as, [68], which aimed at finding how the
reliability of financial reporting is affected by
creative accounting ethics techniques. Creative
accounting ethics techniques measured by
qualitative characteristics of accounting
information, commitment to ethical standards, and
roles of statutory auditors in creative accounting
practices were utilized in this paper. The analytical
descriptive analysis was adopted to reach the
current paper's objective. The community of this
study consists of, [65], practitioners of the
accounting and auditing profession in the KSA
environment. It was found that the reliability of
financial reporting statements is affected negatively
and statistically by qualitative characteristics of
accounting information, commitment to ethical
standards, and roles of statutory auditors in creative
accounting practices.
Furthermore, a study by, [69], also aimed at
finding how the credibility of financial statements
is affected by creative accounting practices in Iraq.
Creative accounting practices measured by creative
accounting practices in the statement of cash flow,
creative accounting practices in the statement of
income, and creative accounting practices in the
statement of financial position were utilized in this
paper. The analytical descriptive analysis was
adopted to reach the current paper's objective. The
community of this study consists of, [43], Office of
the Comptroller accounts of licensees to work in
the profession under the bulletin issued by the
Council of career control and Audit in Iraq. It was
found that the credibility of financial statements is
affected negatively and statistically by creative
accounting practices measured by creative
accounting practices in the statement of cash flow,
creative accounting practices in the statement of
income, and creative accounting practices in the
statement of financial position.
The current study aimed at researching creative
accounting practices and their impact on the
credibility of financial reports in Jordanian
commercial banks, and it is clear from previous
studies that were presented that although previous
studies dealt with the subject of the study, none of
them dealt with the subject of the study in all its
dimensions, which is accounting practices creative
in each of the financial statements represented by
creative accounting practices in the statement of
financial position, creative accounting practices in
the statement of income, and creative accounting
practices in the statement of cash flow and its
impact on the credibility of the financial statements
in the Jordanian environment, as the current study
is distinguished from its predecessors by its
modernity as it was conducted during the year
2020, and therefore the current study is a new study
can be relied upon by the departments of
commercial banks of Jordan in making their
decisions, and can benefit researchers in the
development of their research using the results.
Based on the findings of the previous studies
discussed above, the current study formulates the
following hypotheses:
Ho1: "There is no significant impact of creative
accounting practices on the credibility of financial
reports in Jordanian commercial banks."
Ho1-1: "There is no significant impact of creative
accounting practices in the statement of financial
position on the credibility of financial reports in
Jordanian commercial banks."
Ho1-2: "There is no significant impact of creative
accounting practices in the statement of income on
the credibility of financial reports in Jordanian
commercial banks."
Ho1-3: "There is no significant impact of creative
accounting practices in the statement of cash flow
on the credibility of financial reports in Jordanian
commercial banks".
4 Research Design
The present chapter provides a summary of the
methods of the research which were utilized. It also
gives data about the study sample, their identity,
and the way they participated in the study sample.
Depending on the studies on used creative
accounting practices, the study used the
quantitative method to study the impact of creative
accounting practices on the credibility of financial
reports in Jordanian commercial banks. This
section contains five parts. The 1st part clarifies
why the study used the quantitative approach and
shows its outcomes. Part two presents the ways the
questionnaire was examined and the places it was
distributed. Part three presents a characterization
and negotiation of the quantitative research method
and why the academics used the survey method.
Part four presents a discussion of information
analyses. Moreover, part five presents the
conclusion.
WSEAS TRANSACTIONS on COMPUTER RESEARCH
DOI: 10.37394/232018.2023.11.36
Abeer Al-Khoury, Husni Al- Shattarat,
Rasha Alghazzawi, Hossam Haddad
E-ISSN: 2415-1521
398
Volume 11, 2023
This study uses the quantitative approach to
test the impact of creative accounting practices on
the credibility of financial reports in Jordanian
commercial banks. This is due to their exceptional
benefits for the descriptive designs, which need no
tests and aim to characterize reality and test the
thesis. Research from, [70], clarifies that the
quantitative approach is an investigation procedure
of comprehension that depends on the method of
inquiry tradition, which investigates problems,
allows composite building, overall picture, word
analyzing, announcing detailed informants'
opinions, and managing the research in natural
situations.
Among the parts of the quantitative approach is
a survey, which is applied to start incidents or
spreading of a specific situation. Also, the survey
method is often used to gather behavior and attitude
data. According to, [71], states that a classical
experimental design questionnaire is the perfect
choice for some issues whose participants are
randomly distributed to a group of dominant or a
group of intervention.
At first, the researchers should be sure that the
information will be gathered in a standard form by
making a questionnaire that carefully gives directed
and planned questions, [72], that include short and
obvious questions. This chapter is followed by a
survey which was managed to be distributed as a
survey. The pattern of the survey is as follows: the
1st part contained the form to be filled with the
demographic data of participants (age, gender,
experience, specialization, and degree). The other
parts contained scale questions that aimed to seize
the variables, dependent variable, and independent
variables of every subdivision of the survey
creative accounting practices in the statement of
financial position, creative accounting practices in
the statement of income, creative accounting
practices in the statement of cash flow, and
credibility of financial reports.
The survey designed the questions to make sure
the participants understand the statements. In
addition, the survey confirms the easy
comprehension and obviousness of all parts of the
survey. The survey was also previously tested by
the academic's supervisor and was improved
depending on the supervisor's recommendations.
The survey questions were improved
depending on the available measurements and
scales from the present literature. The 5-Likert
scale was utilized to seize the items with a range of
five points: 5= strongly agree, 4- agree, 3= neutral,
2= disagree & 1= strongly disagree. This scale
assists the respondents in choosing particular
answers. The research structure presented contains
four variables, where the first variable creative
accounting practices in the statement of financial
position is from 5 questions formulated by relying
on the following studies, [1], [10], [67], [69],
whereas the second variable [creative accounting
practices in the statement of income] contained,
[5], questions that were formulated based on the
following studies, [1], [8], [10], [68], as for the
third variable [creative accounting practices in the
statement of cash flow], it contains, [5], questions
that were formulated based on the following
studies, [1], [3], [7], [44], finally, as the credibility
of financial reports, it contains, [5] questions that
were formulated by drawing on the following
studies, [8], [10], [69].
According to, [73], the research quality is
highly affected by the method of selecting the
sampling method. The selected sample in this study
is the random sample to fulfill the schedule that
acknowledged the impact of creative accounting
practices on the credibility of financial reports, and
this subject was not studied before, mainly in
Jordanian commercial banks. So, the study sample
included senior and mid-managers and employees
in commercial banks in Jordan, males and females
with various academic and educational levels
[doctorate, master, Bachelor, and diploma].
According to, [71], says that deciding the study
sample size is a crucial step in characterizing any
statistical study. Also, [73], say that the size of the
sample selected should represent the targeted
people. The significance of the size of the study
sample and determining it was negotiated by, [71],
by stating that the size of the sample is a critical
element that affects the error margin.
The researchers got experimental information
from the sample respondents by testing the tool of
the study sample. Research from, [74], attempted to
evaluate the rate of the population; the sample
containing 100 participants gave an error margin of
less than 10%. The sample, which includes 500
participants, gives an error margin of less than
4.5%. The sample, which includes 1000
participants, gives an error margin of less than 3%.
The sample size should be more than three times
the total number of questions; if the survey has 20
questions, it should be distributed to senior and
mid-managers and employees in commercial banks
in Jordan. The survey included 80 participants,
retrieved 56 questionnaires by the participants in
the survey, while, 5 were disregarded since they
were answered carelessly, and, 51 questionnaires of
them were correctly filled. The procedure of
gathering information started on 13/04/2020 and
WSEAS TRANSACTIONS on COMPUTER RESEARCH
DOI: 10.37394/232018.2023.11.36
Abeer Al-Khoury, Husni Al- Shattarat,
Rasha Alghazzawi, Hossam Haddad
E-ISSN: 2415-1521
399
Volume 11, 2023
ended on 21/04/2020. The surveys were distributed
through Google Forms by asking participants in the
survey of all levels to fill out the surveys.
Fig. 1: Model of creative accounting practices resulting to financial reports credibility [38]
The researchers utilized statistical analysis,
which affected and changed the essential
information into numbers to give beneficial data.
The academics are going to test and adjust
information for perfectness and uniformity. They
excluded incomplete questionnaires, which made a
percentage of 6.2%. So that to have the information
in the form of a numerical weighting scale, they
will test the information by using a quantification
procedure coding scales: 5= strongly agree & 1=
strongly disagree. A statistical method, Social
Science Software SPSS, was utilized to analyze the
information and test the hypotheses improved for
this study.
Figure 1 shows the conceptual framework of
the research variables regarding the independent
variables which is Creativity accounting practices
while the dependent represents credibility of
financial reports.
5 Results of the Study
This chapter consists of the findings gained back
from the conducted online survey. The survey has
been distributed to senior and mid-managers and
employees in commercial banks in Jordan. This
chapter will present and analyze the results
obtained using multiple regression Analysis (SPSS,
22). This chapter is going to analyze reliability
testing and analyze the descriptive. Finally, it will
be used of multiple regression analysis, to verify
the hypotheses of the study that researchers
previously developed.
WSEAS TRANSACTIONS on COMPUTER RESEARCH
DOI: 10.37394/232018.2023.11.36
Abeer Al-Khoury, Husni Al- Shattarat,
Rasha Alghazzawi, Hossam Haddad
E-ISSN: 2415-1521
400
Volume 11, 2023
5.1 Sample Characteristics
Table 1. Demographics analysis of a sample
Gender
Male
Female
Frequency
36
15
Percentage%
70.6
29.4
Age
From 22-24.
From 25-35.
From 36-45.
46 years & above.
Frequency
3
25
14
9
Percentage%
5.9
49.0
27.5
17.6
Degree
Diploma
Bachelor
Masters
Doctorate
Frequency
0
26
25
0
Percentage%
0
51.0
49.0
0
Certificates
CPA
CFA
CFE
Others:………………
Frequency
3
4
5
39
Percentage%
5.9
7.8
9.8
76.5
Experience
Less than two years.
2-5 years.
5-10 years.
More than 10 years.
Frequency
3
24
16
8
Percentage%
5.9
47.1
31.4
15.7
Table 1 shows that based on data acquired via
the responding sample in terms of the Sample:
gender, age, academic level, professional
certification, and employment experience. For the
sample by gender, the data indicated that 70.6%
whereas 36 out of 51 respondents in the sample
research were male. In contrast, 29.4% of the
second-rank had been 15 out of 51 responders
female. This means the males took up more than
half of the sample.
The following describes the distribution of the
study sample by age which indicated that 3 out 51
respondents represents 5.9% of the research group
was between the ages of 22 and 24 years old, while
25 out 51 respondents represents 49% between the
ages of 25 and 35 years old that implies this group
is highest majority of the sample size. On other
hand 14 out 51 respondents represents 27.5% of
respondents were between the ages of 36 and 45
years old. Further, 9 out 51 respondents represents
17.6% of the population were 46 years and above
In the highest qualification of education, the
majority of the sample had a Bachelor's degree,
with 51%. While 9 people obtained professional
certificates from the people who filled out the
survey in this study. As for the experience, it was
found that the majority of the study samples were
those who had 2-5 years of experience.
5.2 Reliability and Descriptive Analysis
Table 2 shows a descriptive analysis of the
variables questions. It is noticed from Table 2 that
the total average of answers for the variable
creative accounting practices in the statement of
financial position is 1.627; the result is closer to
"strongly disagree." The total average of answers
for creative accounting practices in the statement of
income is 1.957; the result is closer to "disagree."
The total average of answers for creative
accounting practices in the statement of cash flow
is 1.780; the result is closer to "disagree." Finally,
the total average of answers for credibility of
financial reports is 4.369; the result is closer to
"strongly agree."
It is also noted that the value of the standard
deviation of all variables decreases, which indicates
an agreement in the study sample about these
variables.
The Cronbach alpha test measures the validity
of the variables. Table 2 shows the values exceed
70% of Cronbach alpha, which indicates the
reliability of all of the variable, [74]. The Cronbach
alpha for creative accounting practices in the
statement of financial position is (0.715), The
Cronbach alpha for creative accounting practices in
the statement of income is (0.892), The Cronbach
alpha for creative accounting practices in the
statement of cash flow is (0.937) and The Cronbach
alpha for The credibility of financial reports is
(0.855) the results of each variable get a value of
more than 70%.
Table 2. Construct reliability and Validity analysis, and Descriptive analysis
Mean Scores
α
Std. Deviation
1.627
0.715
0.320
1.957
0.892
0.599
1.780
0.937
0.662
4.369
0.855
0.499
WSEAS TRANSACTIONS on COMPUTER RESEARCH
DOI: 10.37394/232018.2023.11.36
Abeer Al-Khoury, Husni Al- Shattarat,
Rasha Alghazzawi, Hossam Haddad
E-ISSN: 2415-1521
401
Volume 11, 2023
5.3 Testing Hypotheses
To decide if the study hypotheses are acceptable or
not, multiple linear regressions were used in the
study. Also, to know whether the hypotheses are
acceptable or not, the study used significance with a
rate less than 0.05 so that to assure the substitution
hypotheses and reject those which are invalid as the
academics utilized R² [coefficient of determination
value] to clarify the accuracy in illustrating how the
credibility of financial reports responds to creative
accounting practices. There's a rule which proclaims
that when the value of significance is less than 0.05
(Sig < 0.05), then the hypothesis "Ho" is rejected,
and "H" is acceptable. To prove the 1st main
hypothesis, the study utilized multiple linear
regressions (Table 3) as below.
1. Ho1: "There is no significant impact of creative
accounting practices on the credibility of
financial reports in Jordanian commercial
banks." The results of the analysis rejected the
hypothesis and supported "H" because Sig. F is
less than 5%, its equal (Sig. F-distribution =
0.000; F-distribution = 7.187). This means
"there is an impact of creative accounting
practices on the credibility of financial reports
in Jordanian commercial banks."
2. Ho1-1: "There is no significant impact of creative
accounting practices in the statement of
financial position on the credibility of financial
reports in Jordanian commercial banks." The
results of the analysis rejected the hypothesis
and supported "H" because Sig.T is less than
5%, it's equal (Sig < 0.05, = 0.015; T-value= -
2.533; Coefficient = -0.319). This means that if
creative accounting practices are applied in the
statement of financial position, then the
credibility of financial reports will decrease.
3. Ho1-2: "There is no significant impact of creative
accounting practices in the statement of income
on the credibility of financial reports in
Jordanian commercial banks." The results of the
analysis rejected the hypothesis and supported
"H" because Sig.T is less than 5%, it's equal
(Sig < 0.05, = 0.004; T-value= -3.023;
Coefficient = -0.381). This means that if
creative accounting practices in the statement of
income, then the credibility of financial reports
will decrease.
4. Ho1-3: "There is no significant impact of creative
accounting practices in the statement of cash
flow on the credibility of financial reports in
Jordanian commercial banks." The results of the
analysis rejected the hypothesis and supported
"H" because Sig.T is less than 5%, it's equal
(Sig < 0.05, = 0.003; T-value= -3.124;
Coefficient = -0.377). This means that if
creative accounting practices in the statement of
cash flow, then the credibility of financial
reports will decrease.
5. Besides that Table 3 shows the Adjusted R² rate
is 0.271, which points to the credibility of
financial reports that relies on creative
accounting practices creative accounting
practices in the statement of financial position,
creative accounting practices in the statement of
income, and creative accounting practices in the
statement of cash flow, this value is moderate
and reliable in the process of interpretation and
prediction in the credibility of financial reports
in Jordanian Commercial banks.
Table 3. The Results of Testing First Main Hypothesis and Sub Hypotheses
Hypotheses
Path Coefficients [β]
T-value
Std. Error
Sig. T< 0.05
Adjusted R2
Ho1.1: Rejected
-0.319
-2.533
0.196
0.015
0.271
Ho1.2: Rejected
-0.381
-3.023
0.105
0.004
Ho1.3: Rejected
-0.377
-3.124
0.091
0.003
Ho1: Rejected
[F-value = 7.187; Sig. F < 0.05 = 0.000.; R =0.561]
WSEAS TRANSACTIONS on COMPUTER RESEARCH
DOI: 10.37394/232018.2023.11.36
Abeer Al-Khoury, Husni Al- Shattarat,
Rasha Alghazzawi, Hossam Haddad
E-ISSN: 2415-1521
402
Volume 11, 2023
6 Conclusion, Limitations, and
Recommendations
The target of the study is to test the impact of
creative accounting practices on the credibility of
financial reports in Jordanian commercial banks.
Senior and mid-managers and employees in
commercial banks constituted the sample of the
study. Depending on the literature in hand, the
academics assure the existence of an impact of
creative accounting practices on the credibility of
financial reports in Jordanian commercial banks.
The findings of this study support this, as illustrated
in the previous section. This study points to the gap
in research and so calls for more studies in the
future in this scope to detect the variations and
similarities between the sector of banking and other
sectors. As a result, the reliability of financial
statements is an essential requirement that must be
taken into consideration by bank departments as an
effective weapon to try to address creative
accounting practices to increase transparency in the
data presented in the financial statements that are
directed to a broad segment of decision-makers. The
results of this study were compatible with the
preceding studies' outcomes such as, [2], [10], [67].
At last, there are several aspects of creative
accounting practices, including a positive aspect that
includes accounting methods and principles to
identify changes in the economic, political, and
administrative aspects, and there is a negative side
to exploit flexibility and gaps in accounting
standards to improve the image of the economic
establishment by misleading the financial
statements, which may Stumble occurs in these
facilities.
There are a few limitations of the current
research. The first limitation is that the low response
to the survey can lead to a bias in non-response, and
this bias was evident in the test for Jordanian
commercial banks. All due to the circumstances that
Jordan and other countries are going through from a
curfew due to the Covid 19. The second limitation is
that the researchers conducted a few types of
research that investigated how the credibility of
financial reports in Jordanian commercial banks is
influenced by creative accounting practices.
In conclusion, the current study recommends
that the regulatory bodies in Jordan adopt policies to
discover creative accounting methods in the
financial statements and the development of
deterrent laws that are based on the issuance of
penalties and sanctions for those who practice such
methods. The study suggests conducting several
future studies that focus on creative accounting
practices in Jordan to reduce them and achieve the
highest possible level of decision support.
References:
[1] Nangih E. (2017). Nexus between Creative
Accounting Practices and Financial
Statements Quality in Nigeria: A Reflection of
Oil Servicing Companies in Port Harcourt
Metropolis. Journal of Accounting and
Financial Management, 3 (3), pp.64-71.
[2] Akpanuko E. E., Umoren N. J. (2018). The
influence of creative accounting on the
credibility of accounting reports. Journal of
Financial Reporting and Accounting. the
credibility of accounting reports", Journal of
Financial Reporting and Accounting, Vol. 16
Issue: 2, pp.292-310.
[3] Okoro E. G., Okoye, E. I. (2016). Taming
creative accounting via international financial
reporting standards: The Nigerian scenario.
Business Trends, 6 (4), pp.11-17.
[4] Bhasin M. L. (2013). Corporate Governance
and Forensic Accountant: an Exploratory
Study, Journal of Accounting, Business and
Management, October, 20 (2), pp.55-75
[5] Bhasin M. L., Shaikh J. M. (2013). Economic
value added and shareholders’ wealth
creation: the portrait of a developing Asian
country. International Journal of Managerial
and Financial Accounting, 5 (2), pp.107-137.
[6] Yadav B., Kumar A., Bhatia B. S. (2014).
Concept of creative accounting and its
different tools. International Journal of
Management and Social Sciences Research
[IJMSSR], 3 (2), pp.66-74.
[7] Hamad M. M. A. (2014). The role of auditing
in reducing the creative accounting effects on
the financial data of the Iraqi companies M.
Mageed AbdZaid Hamad University of Al-
Qadissiya College of Economic and
Administration Department of Accounting. Al
Kut Journal of Economics Administrative
Sciences, 1 (16), pp.260-282.
[8] Taherinia M., Tavakoli N., Tavakoli F.
(2018). The Impact of Creative Accounting on
the Probability of Fraud in the Companies
Accepted in the Tehran Stock Exchange.
Industrial Engineering & Management
Systems, 17 (4), pp.709-718.
[9] Saleh M. M. A., Jawabreh O. A., Alsarayreh
M. N., Abu-Eker E. F. M., Jahmani A. (2019).
The Motives for Applying Creative
Accounting Methods and Their Impact on the
Credibility of Financial Statements in
WSEAS TRANSACTIONS on COMPUTER RESEARCH
DOI: 10.37394/232018.2023.11.36
Abeer Al-Khoury, Husni Al- Shattarat,
Rasha Alghazzawi, Hossam Haddad
E-ISSN: 2415-1521
403
Volume 11, 2023
Jordanian Hotels. Journal of Southwest
Jiaotong University, 54 (4).
[10] Al-Olimat N. H. (2019). "The Impact of
Cognitive Creativity in Accounting among
Jordanian Internal Auditors on Detecting
Creative Accounting Practices, A Field Study.
International Journal of Business and Social
Science, 10 [2].
[11] Salome E. N., Ogbonna M. I., Marcel E. C.,
Echezonachi O. E. (2012). The effect of
creative accounting on the job performance of
accountants [auditors] in reporting financial
statements in Nigeria. Kuwait chapter of
Arabian Journal of Business and Management
Review, 33 (845), pp.1-30.
[12] Brander M., Gillenwater M., Ascui F. (2018).
Creative accounting: A critical perspective on
the market-based method for reporting
purchased electricity (scope 2) emissions.
Energy Policy, 112, pp.29-33.
[13] John H. R., Kamau J. G., Nzioki P. M. (2018).
Influence of Creative Accounting Practices on
Tax Evasion Amongst Small and Medium
Enterprises in Nakuru, Kenya. International
journal of business and processes, 4 (2), 9-9.
[14] Ochotorena F. R. (2018). Creative
Accounting: Ethical Challenges Confronting
External Auditors Behind the Cooking of the
Books. The Dividends: Nacpae Journal of
Accounting Research, 1 (1).
[15] Karim A. M., Fowzia R., & Rashid M. M.
(2014). Perception gap analysis between
external auditors and accountants in the
application of creative accounting techniques
in Bangladesh. International Journal of
Managerial and Financial Accounting, 6 (4),
pp.296-302.
[16] Remenarić B., Kenfelja I., Mijoč I. (2018).
Creative Accounting-Motives, Techniques
and Possibilities Of Prevention. Ekonomski
Vjesnik, 31 (1), pp.193-199.
[17] Shahid M., Ali H. (2016), “Influence of
Creative Accounting on Reliability and
Objectivity of Financial Reporting (Factors
Responsible for Adoption of Creative
Accounting Practices in Pakistan)”, Journal of
Accounting and Finance in Emerging
Economies, Vol. 2, No. 2, pp.75-82.
[18] Mindak M. P., Sen P. K., Stephan J. (2016),
“Beating threshold targets with earnings
management”, Review of Accounting and
Finance, Vol. 15, No. 2, pp.198-221.
[19] Karim A. M., Shaikh J. M., Hock O. Y., Islam
M. R. (2016), "Solution of Adapting Creative
Accounting Practices: An In-depth Perception
Gap Analysis among Accountants and
Auditors of Listed Companies," Australian
Academy of Accounting and Finance Review,
Vol. 2, No. 2, pp.166-188.
[20] Ndebugri H., Twen Gherai S. D., Balaciu M.
D. (2011), From Creative accounting practices
and Enron phenomenon to the current
financial crisis; Annales Universitatis
Apulensis Series Oeconomica Vol 1, Issue 13,
3.
[21] Amat O., Gowthorpe C. (2010). Creative
accounting: Nature, incidence and ethical
issues. Journal of Economic Literature
Classification. M4, pp.11-15.
[22] Ezeani E., Ogbonna I., Ezemoyih M. (2012).
The effect of creative accounting on the job
performance of accountants (Auditors) in
reporting financial statements in Nigeria.
Kuwait Chapter of Arabian Journal of
Business Management Review. 1 (9).
[23] Effiok O. S., Eton E. O. (2012), Creative
Accounting and Managerial Decision on
selected Financial Institutions in Nigeria.
International Journal of Business Research
and Management, Vol. 3 (1).
[24] Fizza T., Qaisar A.M. (2015), "Creative
accounting and financial reporting: model
development and empirical testing,"
International Journal of Economics and
Financial Issues, Vol. 5 No. 2, pp.544-551.
[25] Nyabuti V.O, Memba F., Chege C. N. (2016).
Influence of creative accounting practices on
the financial performance of companies listed
in the Nairobi Security Exchange in Kenya.
International Journal of Management and
Commerce Innovations. 3 (2), pp.45-59.
[26] Van Caneghem T. (2002), “Creative
accounting induced by cognitive reference
points”, British Accounting Review, Vol. 34
No. 2, pp.167-178.
[27] Brijesh Y. (2014), "Creative accounting: an
empirical study from professional
perspective", International Journal of
Management and Social Sciences Research,
Vol. 3 No. 1, pp.23-56
[28] Prerna J., Anurodh G. (2015), “Role of
creative accounting in financial scandals: an
exploratory study of some high profile
companies”, Pezzottaite Journals, Vol. 4 No.
3, pp.78-95.
[29] Niskanen J., Keloharju M. (2000), "Earning
cosmetics in a tax-driven accounting
environment: evidence from Finnish public
firms," The European Accounting Review,
Vol. 9 No. 3, pp.443-452.
WSEAS TRANSACTIONS on COMPUTER RESEARCH
DOI: 10.37394/232018.2023.11.36
Abeer Al-Khoury, Husni Al- Shattarat,
Rasha Alghazzawi, Hossam Haddad
E-ISSN: 2415-1521
404
Volume 11, 2023
[30] McNichols M., Wilson G.P. (1998),
"Evidence of creative accounting from the
provision for bad debts," Journal of
Accounting Research, Vol. 26, pp.1-33.
[31] Akenbor C. O., Ibanichuka E. A. L. (2012).
Creative Accounting Practices in Nigerian
Banks. African Research Review-
International Multidisciplinary Journal,
Ethiopia, Vol. 6 (3), Serial No. 26.
[32] Jawad F.A., Xia X. (2015). International
Financial Reporting Standards and Moral
Hazard of Creative Accounting on Hedging.
International Journal of Finance and
Accounting, vol. 4, no. 1, pp.60-70.
[33] Munene J. W. (2016). The Effect of Creative
Accounting On Shareholders’ Wealth in
Listed Companies in Kenya (Doctoral
dissertation, University Of Nairobi).
[34] Kamau C. G., Namusonge G. S., Bichanga W.
O. (2016). Creative accounting among
corporations listed in NSE: Sector
analysis. The International Journal of
Business & Management, 4(1), 161.
[35] Bhasin M. L. (2016), “Survey of Creative
Accounting Practices: An Empirical Study”,
Wulfenia Journal, Vol. 23, No. 1, pp.143-162.
[36] Elisabeta B. D., Beatrice V. A. (2010).
Creative Accounting-Players and their Gains
and Loses. Annals of Faculty of Economics, 1
(2), pp.813-819.
[37] Fizza T., Malik Q. A. (2015). Creative
Accounting and Financial Reporting: Model
Development and Empirical Testing,
International Journal of Economics and
Financial Issues.
[38] Matis A. B. V., Negrea, L. (2009), “Cash-
Flow Reporting between Potential Creative
Accounting Techniques and Hedging
Opportunities Case Study Romania”.
Annales Universitatis Apulensis Series
Oeconomica, Vol. 11, No. 1, pp.140-153.
[39] Osisioma B. C., Enahoro J. A. (2006).
Creative Accounting and Option of Total
Quality Accounting in Nigeria; Journal of
Global Accounting; 2 (1); 515.
[40] Patnaik B. C. M. (2014). Creative accounting
and Window Dressing: an empirical analysis,
International Journal of Management, vol. 5,
issue 2, Feb. pp.61-68.
[41] Odia J. O., Ogiedu K.O (2013), “Corporate
Governance, Regulatory Agency and Creative
Accounting Practices in Nigeria”,
Mediterranean Journal of Social Sciences;
Vol. 4, No.3.
[42] Okoye E. J., Alao B. B. (2008). The Ethics of
Creative Accounting in Financial Reporting:
The Challenges of Regulatory Agencies in
Nigeria. Certified National Accountant, 16
(1).
[43] Assadaq F., Malik Q. A. (2015). Creative
accounting and financial reporting: model
development and empirical testing,
International Journal of Economics and
Financial Issues, Vol. 5, Issue 2, pp.544-551
[44] Abed I. A., Hussin N., Ali M. A., Haddad H.,
Shehadeh M., Hasan E. F. (2022). Creative
accounting determinants and financial
reporting quality: Systematic literature
review. Risks, 10(4), 76.
DOI: https://doi.org/10.3390/risks10040076.
[45] Zuca M., Ioanas C. (2012). Embellishment of
financial statements through creative
accounting policies and options. Procedia -
Social and Behavioral Sciences 62, Bucharest,
Romania
[46] Adaramola A. A., Atanda O. A. (2014). "The
Relationship between Financial Accounting,
Auditing and Market Values of Quoted Firms
in Nigeria." Global Journal of Contemporary
Research in Accounting, Auditing, and
Business Ethics ISSN: 2311-3162, Vol.1,
Issues 1.
[47] Bakre O.M. (2007). The Unethical Practices
of Accountants and Auditors and the
compromising stance of professional bodies in
the corporate world: Evidence from Corporate
Nigeria Accounting Forum, 31 (3).
[48] Dabor E. L., Adeyemi S. B. (2009). Corporate
governance and the credibility of financial
statements in Nigeria. Journal of Law and
Governance, 4 (1).
[49] Benmelech E., Bergman N. K. (2008).
Liquidation values and the credibility of
financial contract renegotiation: Evidence
from US airlines. The Quarterly Journal of
Economics, 123 (4), pp.1635-1677.
[50] Kamau. C. Mutiso, Ngui D. (2012). Tax
avoidance and evasion as a factor influencing
creative accounting practice among
companies in Kenya. Journal of Business
Studies Quarterly 2012. 4 (2) pp.77-84
[51] Fong A. (2006). "Earnings Management in
Corporate Accounting: An Overview,"
Cross‐Sections, Vol. 2, pp.81-95.
[52] Humpherys S. L., Moffitt K. C., Burns M. B.,
Burgoon J. K., Felix W. F. (2011).
Identification of fraudulent financial
statements using linguistic credibility
WSEAS TRANSACTIONS on COMPUTER RESEARCH
DOI: 10.37394/232018.2023.11.36
Abeer Al-Khoury, Husni Al- Shattarat,
Rasha Alghazzawi, Hossam Haddad
E-ISSN: 2415-1521
405
Volume 11, 2023
analysis. Decision Support Systems, 50 (3),
pp.585-594.
[53] Cao Y., Wasley C. E., Wu J. S. (2007). Soft-
talk management cash flow forecasts:
Verifiability, credibility, and stock price
effects.
[54] Keung E. C. (2017). Do supplementary sales
forecasts increase the credibility of financial
analysts' earnings forecasts? The Accounting
Review, 85 (6), pp.2047-2074.
[55] Opanyi R. O. (2016). The effect of adoption
of international public sector accounting
standards on quality of financial reports in the
public sector in Kenya. European Scientific
Journal, 12 (28), pp.1857-7881.
[56] McCallig J., Robb A., Rohde F. (2019).
Establishing the representational faithfulness
of financial accounting information using
multiparty security, network analysis, and a
blockchain. International Journal of
Accounting Information Systems, 33, pp.47-
58.
[57] Olagunju A. (2011). An empirical analysis of
the impact of auditors' independence on the
credibility of financial statements in Nigeria.
Research journal of finance and accounting, 2
(3), pp.82-99.
[58] Herath S. K., Albarqi, N. (2017). Financial
reporting quality: A literature review. Int. J.
Bus. Manag. Commer, 2 (2), pp.1-14.
[59] Rahman S. (2012). Impression management
motivations, strategies and disclosure
credibility of corporate narratives. Journal of
Management Research, 4 (3), 1.
[60] Abed I. A., Hussin N., Haddad H., Al-Ramahi
N. M., Ali M. A. (2022). The moderating
impact of the audit committee on creative
accounting determination and financial
reporting quality in Iraqi commercial banks.
Risks, 10(4), 77.
DOI: https://doi.org/10.3390/risks10040077.
[61] Ball R., Jayaraman, S., Shivakumar, L.
(2012). Audited financial reporting and
voluntary disclosure as complements: A test
of the confirmation hypothesis. Journal of
Accounting and Economics, 53 (1-2), pp.136-
166.
[62] Wang L., Tuttle, B. (2014). Using corporate
social responsibility performance to evaluate
financial disclosure credibility. Accounting
and Business Research, 44 (5), pp.523-544.
[63] Ioannou I., Serafeim G. (2017). The
consequences of mandatory corporate
sustainability reporting. Harvard Business
School research working paper, pp.11-100.
[64] Abed I. A., Hussin N., Haddad H.,
Almubaydeen T. H., Ali M. A. (2022).
Creative accounting determination and
financial reporting quality: the integration of
transparency and disclosure. Journal of Open
Innovation: Technology, Market, and
Complexity, 8(1), 38.
DOI: https://doi.org/10.3390/joitmc8010038.
[65] Athanasakou V., Hussainey K. (2014). The
perceived credibility of forward-looking
performance disclosures. Accounting and
business research, 44 (3), pp.227-259.
[66] Dobler M. (2008). Incentives for risk
reporting - A discretionary disclosure and
cheap talk approach. The International Journal
of Accounting, 43 (2), pp.184-206.
[67] Al-Takriti T., (2019). Creative Accounting
Practices and its Impact on the Credibility of
Financial Reports to Support Financial
Decisions in Private Commercial Banks in
Iraq. A thesis submitted for the Ph.D. degree
in Accounting and Finance.
[68] Ismael A. Y. A. (2017). The impact of
creative accounting techniques on the
reliability of financial reporting with
particular reference to Saudi auditors and
academics. International Journal of
Economics and Financial Issues, 7 (2),
pp.283-291.
[69] Al-Zayadi M., (2016). The impact of
creative accounting methods on the credibility
of financial statements "An Empirical Study.
AL-Qadisiyah Journal for Administrative and
Economic Sciences. 7 (2).
[70] Galland C. (2008). Effective teacher
leadership: A quantitative study of the
relationship between school structures and
effective teacher leaders. University of
Missouri-Columbia.
[71] Punch K. F. (2013). Introduction to social
research: Quantitative and qualitative
approaches. Sage Publications.
[72] Kelley K., Clark B., Brown V., Sitzia J.
(2003). Good practice in the conduct and
reporting of survey research. International
Journal for Quality in health care, 15(3),
pp.261-266.
[73] Morse J. M. (Ed.). (1990). Qualitative nursing
research: A contemporary dialogue. Sage
Publications.
[74] Pett M. A. (2015). Nonparametric statistics
for health care research: Statistics for small
samples and unusual distributions. Sage
Publications.
WSEAS TRANSACTIONS on COMPUTER RESEARCH
DOI: 10.37394/232018.2023.11.36
Abeer Al-Khoury, Husni Al- Shattarat,
Rasha Alghazzawi, Hossam Haddad
E-ISSN: 2415-1521
406
Volume 11, 2023
Contribution of Individual Authors to the
Creation of a Scientific Article [Ghostwriting
Policy]
The authors equally contributed in the present
research, at all stages from the formulation of the
problem to the final findings and solution.
Sources of Funding for Research Presented in a
Scientific Article or Scientific Article Itself
No funding was received for conducting this study.
Conflict of Interest
The authors have no conflict of interest to declare.
Creative Commons Attribution License 4.0
(Attribution 4.0 International, CC BY 4.0)
This article is published under the terms of the
Creative Commons Attribution License 4.0
https://creativecommons.org/licenses/by/4.0/deed.en
_US
WSEAS TRANSACTIONS on COMPUTER RESEARCH
DOI: 10.37394/232018.2023.11.36
Abeer Al-Khoury, Husni Al- Shattarat,
Rasha Alghazzawi, Hossam Haddad
E-ISSN: 2415-1521
407
Volume 11, 2023