Proceedings of the IISES Annual Conference, Sevilla, Spain

HIDING THE BANKRUPTCY THROUGH CREATIVE ACCOUNTING

JANA KLIESTIKOVA, MARIA KOVACOVA, TOMAS KLIESTIK

Abstract:

Bankruptcy is one of the most important business externalities. Prediction of corporate failures has become a challenging and discussed issue over the years. However, there is no research dedicated to the opportunity to hide the possible bankruptcy of the company through the creative accounting. Therefore, the main goal of presented study is to identify the challenging scientific gap represented by Earnings management models, through which companies can legally modify, hide and play with their financial data. We focus on the proper literature review in selected issue emphasizing the need to concentrate on the creation of a quality model for the detection and quantification of Earnings Management, which will take into account the specificities of the national environment as well as of the global development trends in the area concerned.

Keywords: earning management, bankruptcy, creative accounting, insolvency

DOI: 10.20472/IAC.2018.035.025

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