tailieunhanh - A BRIEF REVIEW OF CREATIVE ACCOUNTING LITERATURE AND ITS CONSEQUENCES IN PRACTICE

This phenomenon has also been found to hold outside of the United States. Kaplan (1994a, b) finds that turnover probabilities for both Japanese and German executives are significantly related to earnings and stock price performance. Estimates of turnover probability in both countries indicate that stock returns and negative earnings are significant determinants of turnover. 10 Regressions using changes in cash compensation of Japanese executives document a significant impact for pretax earnings and negative earnings, but not for stock returns and sales growth. Kaplan (1994a) compares results for Japanese executives with . CEOs and finds turnover probabilities for Japanese executives more sensitive. | Annales Universitatis Apulensis Series Oeconomica 11 1 2009 A BRIEF REVIEW OF CREATIVE ACCOUNTING LITERATURE AND ITS CONSEQUENCES IN PRACTICE Diana Balaciu1 Victoria Bogdan2 Alina Beattrice Vladu3 ABSTRACT Our research has as main objective a short review of the aspects approached at the European level regarding the role that creative accounting plays in the life of an enterprise. In order to achieve our goal we have analysed approximately 40 academic articles indexed in international database such as Science Direct Emerald and ProQuest. We have used a longitudinal classification of the selected articles studied between the years 1999 and 2009 we have tried also a classification of these papers according to the most frequent debating themes. In the end of our research we have formulated our own conclusion that there is no unanimously or unifying accepted theory at the international or European level regarding what is what the creative accounting represents or which are its basic principles. Key words creative accounting financial scandals financial reporting JEL codes M41 M14 G34 Introduction When and why exactly this concept first appeared and what influenced its development -these are questions that come up when opening this true Pandora s Box creative accounting. With hindsight a few favourable circumstances to this concept can be identified circumstances first related to the economical advent of world states but at the same time to the need of economic entities to create for themselves a good reputation in an increasingly competitive and tough economic environment. About this particular moment that is - the first mention regarding creative accounting practices we can t ignore the fact that the first mention belongs to the founder of accounting - Luca Paciolo. This ambition of making figures more appealing or the opposite if the case is as old as 500 years. Thus Luca Paciolo was shaping in his already renowned De Arithmetica the first accounting manual practices