Research Study Findings from University Teknologi Malaysia Update Understanding of Risk Management (Creative Accounting Determinants and Financial Reporting Quality: Systematic Literature Review): Insurance – Risk Management

2022 MAY 06 (NewsRx) -- By a News Reporter-Staff News Editor at NewsRx Policy and Law Daily -- A new study on risk management is now available. According to news reporting from Kuala Lumpur, Malaysia, by NewsRx journalists, research stated, “Creative accounting is considered to be a 21st-century phenomenon that has received increased attention after the worldwide economic crisis and budget deficits, particularly the prevention and detection of accounting manipulation.”

Our news journalists obtained a quote from the research from University Teknologi Malaysia: “Creative accounting is a practice that influences financial indicators by using accounting knowledge and rules that do not explicitly violate accounting policies, rules, and laws. The main purpose for implementing creative accounting is to show the financial position desired by the company management; stakeholders are informed of what the management wants them to perceive. Creative accounting can be used to manipulate financial information from its correct and accurate form by exploiting existing rules or, in many cases, ignoring one or more rules. Therefore, the methodology of the present work contributes to the existing literature by systematically reviewing the impacts of creative accounting determinants on financial reporting quality, especially in the banking sector. In this review, we describe and critically analyze previous relevant works to identify and assess the relationship between the constructs addressed in the study. In conclusion, this study offers insight for academia, researchers, and practitioners on determining creative accounting practices and their influences on fraudulent financial reporting between 2015 and 2020.”

According to the news reporters, the research concluded: “Lastly, the present study contributes to the existing information by conducting new research on creative accounting determinants to enhance the quality of financial reporting and, therefore, help professionals to improve practices within the profession.”

For more information on this research see: Creative Accounting Determinants and Financial Reporting Quality: Systematic Literature Review. Risks, 2022,10(76):76. (Risks - http://www.mdpi.com/journal/risks). The publisher for Risks is MDPI AG.

A free version of this journal article is available at https://doi.org/10.3390/risks10040076.

Our news editors report that additional information may be obtained by contacting Ibtihal A. Abed, Azman Hashim International Business School, University Teknologi Malaysia, Kuala Lumpur 54100, Malaysia. Additional authors for this research include Nazimah Hussin, Mostafa A. Ali, Hossam Haddad, Maha Shehadeh, Elina F. Hasan.

(Our reports deliver fact-based news of research and discoveries from around the world.)