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Why Do Companies Cook the Books? Empirical Study of the Motives of Creative Accounting of Slovak Companies

Author

Listed:
  • Jakub Michulek

    (Faculty of Operation and Economics of Transport and Communications, University of Zilina, Univerzitna 1, 010 26 Zilina, Slovakia)

  • Lubica Gajanova

    (Faculty of Operation and Economics of Transport and Communications, University of Zilina, Univerzitna 1, 010 26 Zilina, Slovakia)

  • Anna Krizanova

    (Faculty of Operation and Economics of Transport and Communications, University of Zilina, Univerzitna 1, 010 26 Zilina, Slovakia)

  • Roman Blazek

    (Faculty of Operation and Economics of Transport and Communications, University of Zilina, Univerzitna 1, 010 26 Zilina, Slovakia)

Abstract

Studies on creative accounting date back to the latter part of the 20th century. Creative accounting is still a big challenge in financial accounting. The problem of financial statement manipulation might be investigated, for instance, from an accounting, legal, ethical, or psychological perspective. This research aims to identify the main motives for the use of creative accounting and to find out whether corporate culture has an impact on the motives leading to the use of creative accounting. Data collection took place from 18 November 2023 to 18 December 2022. In the research, we used Pearson’s χ 2 test to determine the dependence of the studied variables in contingency tables. Subsequently, correspondence analysis was used. The type of corporate culture does not have an impact on the motives that lead to creative accounting. It was proven that the type of corporate culture has an impact on the performance of creative accounting actions based on the request of a senior employee. The uniqueness of the research lies in the investigation of creative accounting from a psychological and managerial point of view in the territory of the Slovak Republic.

Suggested Citation

  • Jakub Michulek & Lubica Gajanova & Anna Krizanova & Roman Blazek, 2024. "Why Do Companies Cook the Books? Empirical Study of the Motives of Creative Accounting of Slovak Companies," Administrative Sciences, MDPI, vol. 14(7), pages 1-16, July.
    • Handle: RePEc:gam:jadmsc:v:14:y:2024:i:7:p:158-:d:1440013
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    References listed on IDEAS

    as
    1. Jan van Helden & Tjerk Budding & Enrico Guarini & Anna Francesca Pattaro, 2023. "New development: The ethics of accounting information manipulation in the political arena," Public Money & Management, Taylor & Francis Journals, vol. 43(7), pages 699-703, October.
    2. Roman Blazek & Pavol Durana & Jakub Michulek & Kristina Blazekova, 2023. "Does the Size of the Business Still Matter, or Is Profitability under New Management, by Order of the COVID-19?," JRFM, MDPI, vol. 16(4), pages 1-28, March.
    3. Pavol Durana & Roman Blazek & Veronika Machova & Miroslav Krasnan, 2022. "The use of Beneish M-scores to reveal creative accounting: evidence from Slovakia," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 17(2), pages 481-510, June.
    Full references (including those not matched with items on IDEAS)

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