Journal ID : TRKU-29-09-2020-11176
[This article belongs to Volume - 62, Issue - 09]
Total View : 433

Title : Piloting the Role of Corporate Governance and Creative Accounting in Financial Reporting Quality

Abstract :

Recently, studies suggest a potential relationship between corporate governance and creative accounting in presenting high quality of financial reporting practice. Accordingly, corporate governance contributes into the reduction for negative impacts of creative accounting remains unclear and at the center of the debate. Relatively, the research instrument was a questionnaire of 61 questions classified according to the study variables. The distributed samples of the questionnaire were 60, whereas 48 samples returned for analysis in comparison to Cronbach’s Alpha. The study found that the instrument designed to measure the relationship between the research variables has shown a positive outcome. Based on the scores aforementioned, the instrument of this study has shown high levels of reliability. Most of the measurements demonstrate that the existence of a high tendency on the usability of corporate governance in reducing negative creative accounting practices and enhancing the quality of financial reporting. Lastly, the most promising approach seems to be indirect, as it appears that corporate governance primarily causes change and intermediate outcomes, though far from being the most hypothesises relationship.

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