Insights into some psychological triggers that affect judgements, decision-making and accounting choices

The main objective of the study is to identify and qualitatively investigate the links between the universe of accounting options, managerial decisions, creative accounting and irrational behaviour. We have recognised five different aspects affecting human decisions and which are likely to influence the behaviour of a future professional accountant or a manager. Masters students in accounting from three significant Romanian universities were questioned about their perception regarding creative accounting and were investigated about their personality traits. The results of our experimental study have shown that, according to the M.A. students in accounting, the risk aversion of individuals influences the expressions of the creative accounting phenomenon, but it is not correlated with the interest pursued by the managers in choosing accounting policies. Also, in their perception, the act of managerial decision-making in accounting is not influenced by the individual capacities of the decision-maker to take decisions. Respondents believe that the disposition effect is correlated with the choice of accounting policy to maximise or minimise the company’s income and that there is a link between the financial incentives granted by the managers to the accounting professionals in order to beautify the financial statements and the creative accounting practices.