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Creating Accounting Numbers Using Designed Choices: A Case Study of Indian Hotel Industry

Author

Listed:
  • Sandeep Goel

    (Management Development Institute)

Abstract

Creative Accounting has always been a subject of prime interest for shareholders' wealth. Over the years, it has diversified into various forms and sizes. The present study contributes by analyzing the creative accounting practices of the select companies in hotel sector in India, untouched so far. It has been analyzed on four parameters: discretionary accruals, manipulation score, quality of earnings and quality of revenue. The results show that these companies do practise creative accounting in one or the other form. The paper concludes with highlighting the scope for possible solutions for the creative accounting problem. It is hoped that the study improves shareholders' perception about the financial results reported by the companies in their self interest.

Suggested Citation

  • Sandeep Goel, 2014. "Creating Accounting Numbers Using Designed Choices: A Case Study of Indian Hotel Industry," Oblik i finansi, Institute of Accounting and Finance, issue 3, pages 29-35, September.
    • Handle: RePEc:iaf:journl:y:2014:i:3:p:29-35
    as

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    References listed on IDEAS

    as
    1. Jyrki Niskanen & Matti Keloharju, 2000. "Earnings cosmetics in a tax-driven accounting environment: evidence from Finnish public firms," European Accounting Review, Taylor & Francis Journals, vol. 9(3), pages 443-452.
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    4. Omurgonulsen, Mine & Omurgonulsen, Ugur, 2009. "Critical thinking about creative accounting in the face of a recent scandal in the Turkish banking sector," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 20(5), pages 651-673.
    5. Healy, Paul M., 1985. "The effect of bonus schemes on accounting decisions," Journal of Accounting and Economics, Elsevier, vol. 7(1-3), pages 85-107, April.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    creative accounting; discretionary accruals; quality of earnings; quality of revenue; hospitality sector;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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