The Moderating Impact of the Audit Committee on Creative Accounting Determination and Financial Reporting Quality in Iraqi Commercial Banks
The main function behind the conceptualization of creative accounting is maintaining the quality of financial reporting practice. This phenomenon has attracted the attention of researchers for decades, especially in the banking sector, concerning its wide implications and indications for stakeholder...
| Main Authors: | , , , , |
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| Format: | Article |
| Language: | English |
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MDPI AG
2022-04-01
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| Series: | Risks |
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| Online Access: | https://www.mdpi.com/2227-9091/10/4/77 |
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| author | Ibtihal A. Abed Nazimah Hussin Hossam Haddad Nidal Mahmoud Al-Ramahi Mostafa A. Ali |
| author_facet | Ibtihal A. Abed Nazimah Hussin Hossam Haddad Nidal Mahmoud Al-Ramahi Mostafa A. Ali |
| author_sort | Ibtihal A. Abed |
| collection | DOAJ |
| description | The main function behind the conceptualization of creative accounting is maintaining the quality of financial reporting practice. This phenomenon has attracted the attention of researchers for decades, especially in the banking sector, concerning its wide implications and indications for stakeholders, investors, policy makers and competitiveness. However, the practice of creative accounting is accompanied by some undesirable implications resulting from manipulation procedures. Detailed investigations in the previous literature found limited implications of creative accounting determinants on this practice. Thus, the present study investigated the moderation impact of the audit committee in enhancing the impacts of creative accounting determinants and financial reporting quality in the context of commercial banking. A deductive research approach driven by a survey questionnaire was used as the methodology to attain the designed objectives. The analysed data contributed to providing theoretical conceptualization and practical validation of the moderation impacts of the audit committee on creative accounting determinants and financial reporting quality of the banks regarding designed advantages. In addition, the present findings showed that the audit committee highly moderates the determination of creative accounting regarding financial reporting quality in the commercial banking sector. Lastly, the present study introduces the necessity to use such corporate practice for the beneficial parties as the defense line to reduce manipulation practices and enhance the quality of financial reporting. |
| first_indexed | 2024-03-09T10:30:01Z |
| format | Article |
| id | doaj.art-48f8b4bbd68e49519e2f92b28d629e34 |
| institution | Directory Open Access Journal |
| issn | 2227-9091 |
| language | English |
| last_indexed | 2024-03-09T10:30:01Z |
| publishDate | 2022-04-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Risks |
| spelling | doaj.art-48f8b4bbd68e49519e2f92b28d629e342023-12-01T21:21:40ZengMDPI AGRisks2227-90912022-04-011047710.3390/risks10040077The Moderating Impact of the Audit Committee on Creative Accounting Determination and Financial Reporting Quality in Iraqi Commercial BanksIbtihal A. Abed0Nazimah Hussin1Hossam Haddad2Nidal Mahmoud Al-Ramahi3Mostafa A. Ali4Azman Hashim International Business School, Universiti Teknologi Malaysia, Kuala Lumpur 54100, MalaysiaAzman Hashim International Business School, Universiti Teknologi Malaysia, Kuala Lumpur 54100, MalaysiaBusiness Faculty, Middle East University, Amman 11831, JordanBusiness Faculty, Zarqa University, Zarqa 11831, JordanAzman Hashim International Business School, Universiti Teknologi Malaysia, Kuala Lumpur 54100, MalaysiaThe main function behind the conceptualization of creative accounting is maintaining the quality of financial reporting practice. This phenomenon has attracted the attention of researchers for decades, especially in the banking sector, concerning its wide implications and indications for stakeholders, investors, policy makers and competitiveness. However, the practice of creative accounting is accompanied by some undesirable implications resulting from manipulation procedures. Detailed investigations in the previous literature found limited implications of creative accounting determinants on this practice. Thus, the present study investigated the moderation impact of the audit committee in enhancing the impacts of creative accounting determinants and financial reporting quality in the context of commercial banking. A deductive research approach driven by a survey questionnaire was used as the methodology to attain the designed objectives. The analysed data contributed to providing theoretical conceptualization and practical validation of the moderation impacts of the audit committee on creative accounting determinants and financial reporting quality of the banks regarding designed advantages. In addition, the present findings showed that the audit committee highly moderates the determination of creative accounting regarding financial reporting quality in the commercial banking sector. Lastly, the present study introduces the necessity to use such corporate practice for the beneficial parties as the defense line to reduce manipulation practices and enhance the quality of financial reporting.https://www.mdpi.com/2227-9091/10/4/77ethical issuesdisclosure qualityinternal controlownership structuremanipulation sectorbanking sector |
| spellingShingle | Ibtihal A. Abed Nazimah Hussin Hossam Haddad Nidal Mahmoud Al-Ramahi Mostafa A. Ali The Moderating Impact of the Audit Committee on Creative Accounting Determination and Financial Reporting Quality in Iraqi Commercial Banks Risks ethical issues disclosure quality internal control ownership structure manipulation sector banking sector |
| title | The Moderating Impact of the Audit Committee on Creative Accounting Determination and Financial Reporting Quality in Iraqi Commercial Banks |
| title_full | The Moderating Impact of the Audit Committee on Creative Accounting Determination and Financial Reporting Quality in Iraqi Commercial Banks |
| title_fullStr | The Moderating Impact of the Audit Committee on Creative Accounting Determination and Financial Reporting Quality in Iraqi Commercial Banks |
| title_full_unstemmed | The Moderating Impact of the Audit Committee on Creative Accounting Determination and Financial Reporting Quality in Iraqi Commercial Banks |
| title_short | The Moderating Impact of the Audit Committee on Creative Accounting Determination and Financial Reporting Quality in Iraqi Commercial Banks |
| title_sort | moderating impact of the audit committee on creative accounting determination and financial reporting quality in iraqi commercial banks |
| topic | ethical issues disclosure quality internal control ownership structure manipulation sector banking sector |
| url | https://www.mdpi.com/2227-9091/10/4/77 |
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