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DETERMINANTS OF ACCOUNTING CREATIVITY: EMPIRICAL ANALYSIS ON ROMANIAN SMEs IN CONSTRUCTION INDUSTRY

Author

Listed:
  • Daniela Pordea

    (Doctoral School of Economics and Business Administration, Faculty of Economics and Business Administration, Western University of Timisoara, Timisoara, Romania)

  • Dorel Mates

    (Doctoral School of Economics and Business Administration, Faculty of Economics and Business Administration, Western University of Timisoara, Timisoara, Romania)

Abstract

Most research on accounting creativity in our country have approached the companies that had securities admitted on trading in the capital market. But the phenomenon may occur at the level of SME which are not listed on the stock exchange as well. This motivated us to consider this type of entities for our analysis. We focused on the construction industry as it is the base of the economy development and the accounting principles for this sector are very complex. The data was requested directly from entities and manually processed. Using two different models of multiple linear regression analysis, we have estimated the level of discretionary accruals. By comparing the results, we highlighted that for our sample the first model was more relevant. We then tested the influence that entity size, indebtedness ratio, and financial difficulties exert on accounting creativity. The results of our study did not determine a relevant impact of these determinants. We conclude that further research is needed to analyse in a qualitative approach the managers' motivations for creative accounting techniques.

Suggested Citation

  • Daniela Pordea & Dorel Mates, 2019. "DETERMINANTS OF ACCOUNTING CREATIVITY: EMPIRICAL ANALYSIS ON ROMANIAN SMEs IN CONSTRUCTION INDUSTRY," Oradea Journal of Business and Economics, University of Oradea, Faculty of Economics, vol. 4(Special), pages 7-18, May.
    • Handle: RePEc:ora:jrojbe:v:4:y:2019:i:special:p:7-18
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    accounting creativity; construction; discretionary accruals; earnings management; SME.;
    All these keywords.

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics
    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
    • C15 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Statistical Simulation Methods: General

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