Published in Scientific Bulletin. Series F. Biotechnologies, Vol. XXVII, Issue 2
Written by Delia RĂDOI, Gabriela-Lucica MĂRGĂRIT
Creative accounting is a term used to describe the practice of manipulating financial information to present a more favorable picture of a company's financial performance and position than what might be an accurate representation under standard accounting principles. Creative accounting involves altering real accounting figures to convey specific messages desired by managers through exploiting accounting loopholes limitation. Nevertheless, in light of the changing accounting and legal context, researchers are increasingly preoccupied on the managerial outlook with regards to creative accounting and accounting manipulations. The influence of sustainable financial data governance tends to discourage creative accounting by promoting transparency, adherence to ethical principles, and stakeholder trust. On the other hand, political connections can have a more ambiguous impact, as they can either facilitate or discourage creative accounting, depending on the extent of influence and regulatory capture.
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