أثر القياس والإفصاح والشفافية في الحد من ممارسات المحاسبة الإبداعية: دراسة تحليلية قياسية على المصارف الليبية للفترة من (2011-2019).

صالح عبد الهادي; نجلاء الشيلابي

doi:10.54172/mtypgx63

Authors

Saleh Abdalhadi Accounting Department, Faculty of Economics, Omar Al-Mukhtar Univer-sity, Al-bayda, Libya Author
Najla Saleh Al-Shailabi Accounting Department, Faculty of Economics, Omar Al-Mukhtar Univer-sity, Al-Bayda, Libya Author

DOI:

https://doi.org/10.54172/mtypgx63

Keywords:

Creative Accounting, Disclosure, Transparency, Financial Ratios, Libyan Banks, Modified Jones Model

Abstract

This study aims to investigate the impact of accounting measurement, financial disclosure, and transparency on reducing creative accounting practices in Libyan commercial banks from 2011 to 2019. The study is based on secondary data from a sample of four banks and employs short panel data methodology using the Pooled Ordinary Least Squares (POLS) regression model. Several diagnostic tests were conducted, including tests for autocorrelation, Multicollinearity, and heteroskedasticity, utilizing STATA software. The findings reveal a statistically significant and negative impact of disclosure and transparency on creative accounting practices, indicating that enhanced transparency improves the credibility of financial reporting and reduces the opportunity for manipulation. The study also found that older banks are less likely to engage in creative accounting, whereas larger banks tend to exhibit a greater tendency toward such practices. Higher liquidity levels were also associated with a reduction in creative accounting activities. However, the results showed no significant effect of board disclosure on the extent of creative accounting. Based on these results, the study recommends reinforcing regulatory oversight, raising disclosure standards, and adopting stricter accounting measures to reduce creative accounting in the Libyan banking sector.

References

- Abu Zeid, Muhammad Al-Mabrouk. (2005). International Accounting and its Implications for Arab Countries. Itrak Publishing and Distribution, First Edition, Cairo.

- Abu Shamala, Sami Nasr, Al-Bahisi, Manal Ismail, and Al-Suwaikri, Hani Jawdat. (2022). The Impact of Cash Flow Efficiency on Corporate Profitability: An Applied Study on Companies Listed on the Palestine Stock Exchange. Palestine Technical College Journal for Research and Studies, 9(1).

- Ashmeila, Milad Rajab, Larabish, Mansour Muhammad, and Al-Fakhri, Jumaa Muhammad. (2018). Management Practices in Libyan Companies Regarding Earnings Management Techniques from the Perspective of External Auditors. Journal of Economic and Political Sciences, Zliten, Libya.

- Al-Bakou, Faiha, Al-Ali, Manhal, and Al-Afandi, Raslan. (2009). The Role of Transparency and International Accounting Disclosure Standards in Reducing Financial Corruption. Journal of Future Research, 4(26), University of Mosul.

- Bin Al-Taher, Hussein, and Boutalaa, Muhammad. (2012). The Impact of Corporate Governance on Transparency, Disclosure, and the Quality of Financial Statements under the Financial Accounting System. A study presented at the National Forum on Corporate Governance as a Mechanism for Reducing Financial and Administrative Corruption, University of Khider, Algeria.

- Libyan Audit Bureau Reports. (2016). LABR-2016.pdf [http://audit.gov.ly/home/pdf/LABR-2016.pdf]

- Libyan Audit Bureau Reports. (2021). LABR-2021.pdf [http://audit.gov.ly/home/pdf/LABR-2021.pdf]

- Al-Jahani, Afteetim. (2012). The Extent of Availability of the Requirements of the Principle of Disclosure and Transparency as a Principle of Corporate Governance in Libyan Commercial Banks (Master's Thesis). University of Benghazi.

- Hashi, Majda. (2015). The Role of Accounting Transparency and International Accounting Disclosure Standards in Reducing Financial Corruption (Published Master's Thesis). University of El Oued, Algeria.

- Al-Khanaq, Nabil Muhammad. (2006). Organizational Transparency. National Library and Archives, Baghdad.

- Dheiba, Ziad Abdul Halim, Al-Ramahi, Nidal Mahmoud, and Al-Jaidi, Omar Eid. (2011). Information Systems in Control and Auditing. First Edition, Dar Al-Masira, Amman.

- Al-Zoubi, Yamen Khalil. (2005). Accounting Measurement Based on Fair Market Value and Its Importance for Jordanian Industrial Shareholding Companies Listed on the Amman Stock Exchange (Master's Thesis). Yarmouk University.

- Zaghmar, Laila Najma. (2015). The Role of External Auditing in Reducing the Negative Effects of Creative Accounting: A Study of a Sample of Economic Institutions Listed on the 250 Index (Master's Thesis). Larbi Ben M'hidi University - Oum El Bouaghi, Faculty of Economic, Commercial and Management Sciences.

- Suleiman, Sabrina Ben Saber, and Youssef, Ben Sara. (2018). The Role of Tax Control in Reducing Creative Accounting Practices: A Case Study of the Tax Directorate of Ain Temouchent (Master's Thesis). Institute of Economic, Commercial and Management Sciences, Department of Finance and Accounting.

- Law No. (1) of 2005 Concerning Banks, as amended by Law No. 46 of 2012.

- Al-Qumati, Nouri Ali. (2012). Disclosure of Social Responsibility Information in the Annual Reports of Commercial Banks Operating in Libya (Published Master's Thesis). Academy of Graduate Studies, Tripoli, Libya.

- Karima, Dina. (2022). The Impact of Accounting Disclosure of Related Party Transactions on Credit Granting Decisions under Accounting Standards Requirements: A Field Study on the Banking Sector in Egypt. Journal of Accounting and Auditing of the Association of Arab Universities, 11(1).

- Matar, Muhammad, and Al-Suwaiti, Musa. (2008). The Theoretical Foundation of Professional Practices in the Areas of Measurement, Presentation, and Disclosure. Second Edition, Dar Wael Publishing, Jordan.

- Muhammad, Mu'min Farhat Al-Sayyid. (2024). The Impact of Approaches to Developing Accounting Disclosure of Accounting Information on the Informational Quality of Financial Reports: An Applied Guide from Associations and Civil Institutions. Journal of Accounting and Auditing, Association of Arab Universities, Issue 1, Faculty of Commerce, Aswan University.

- Nazira, Ben Sassi, and Kharouba, Youssef. (2023). The Impact of Board Characteristics on Achieving Creative Accounting Practices: A Study on a Sample of Economic Companies. Journal of New Economics, University of Cherif, Souk Ahras, 14(1).

- Adewale, A. A., Shittu, S. A., & Adewole, J. A. (2023). Effect of Bank Sizes and Age on the Financial Performance of Deposit Money Banks in Nigeria. The Journal of V. N. Karazin Kharkiv National University. Series: International Relations, Economics, Country Studies, Tourism, (18), 32–40.

- Blazek, R. (2021). Creative Accounting as a Global Tool for Tax Optimization. In SHS Web of Conferences (Vol. 92, p. 02007). EDP Sciences.

- El-Moayed, N. H., Hegazy, I. R., & Arafah, E. M. (2024). Earnings management mecha-nisms and firm profitability: A comparison study. Arab Journal of Accounting and Auditing, 4(2), 1–28.

- Ghalib, M. M. S., & Kuzimjonov, A. (2024). A multidimensional approach to bankruptcy risk: The effect of accounting conservatism, business strategies, cash flow volatility, and in-terest coverage ratios. Cuadernos de Economía.

Gowthorpe, C., & Amat, O. (2005). Creative accounting: some ethical issues of macro-and micro-manipulation. Journal of Business Ethics, (57), 55-64.

- Griftiths (1986). Creative Accounting. London: Sedgwick & Jackson-

- Joudeh, O. A. A., Barakat, F. S., & Mahmoud, O. A. (2021). The Effect of Using Account-ing Measurement Bases (Cash and Accrual) on the Performance of the Industrial Companies Listed on Palestine Stock Exchange. International Journal of Financial Research, 12(3), 393-406.

- Karman, H. W., Omran, A., & Mohamed-Arshad, S. B. (2024). The impact of debt ratio on financial stability through the mediating role of capital adequacy: Evidence from the regula-t