The Role of Creative Accounting in Earnings Management: An Analytical Study of Accounting Techniques and Their Impact on Financial Transparency

Abstract

     The role of creative accounting in earnings management: An analytical study of accounting techniques and their impact on financial transparency. This study aims to analyze the role of creative accounting in earnings management, with a focus on the accounting techniques used and their impact on financial transparency. The study reviews the concept of creative accounting, the reasons why companies resort to it, and the most prominent tools and methods they adopt to achieve their goals in improving the image of financial performance. The study also discusses the relationship between creative accounting and earnings management, in terms of their impact on the credibility of financial reports and investor decisions. The study relies on an analytical approach by reviewing accounting literature and companies' financial reports, in addition to studying applied cases that illustrate the impact of creative accounting on financial transparency. The study concludes that creative accounting can be a double-edged sword; on the one hand, it contributes to improving the apparent financial performance of companies, but on the other hand, it may lead to a reduction in financial transparency and weaken the confidence of investors and stakeholders. Finally, the study recommends the need to strengthen governance and financial control standards to limit accounting practices that negatively affect transparency, while tightening control procedures to ensure that companies adhere to ethical and professional principles in preparing financial reports.