THE MANIPULATION AND TRUNCATION OF ACCOUNTING INFORMATION AND THE IMPACT ON THE DECISIONAL PROCESS OF THE STAKEHOLDERS Cover Image

THE MANIPULATION AND TRUNCATION OF ACCOUNTING INFORMATION AND THE IMPACT ON THE DECISIONAL PROCESS OF THE STAKEHOLDERS
THE MANIPULATION AND TRUNCATION OF ACCOUNTING INFORMATION AND THE IMPACT ON THE DECISIONAL PROCESS OF THE STAKEHOLDERS

Author(s): Delia Deliu, Ovidiu Constantin Bunget, Alin Dumitrescu
Subject(s): Economy
Published by: Editura Eurostampa
Keywords: accounting information; informational asymmetry; manipulation; creative accounting; audit

Summary/Abstract: Our paper aims to research the way the managers of a company may interfere in applying the accounting policies and methods so that they would gain advantages, besides the other different interests of the accounting information’s users. There are plenty situations when these stakeholders may be influenced in a direction or other by being presented a distorted accounting image, so that their behavior would be distorted too. Presenting an artificial view does nothing but emphasizes the informational asymmetry and influence the way financial markets function. We have exemplified the methods used to signal the informational asymmetry on the financial market from the perspective of the conflict of interests that exists between different users, as well as the methods of manipulation their behavior. We have tried to show that manipulating their behavior through providing the image intended by the managers does not necessarily mean bending the accounting standards and regulations, but it can easily be done within the boundaries of law, by using creative accounting.

  • Issue Year: XIX/2013
  • Issue No: 19
  • Page Range: 84-96
  • Page Count: 13
  • Language: English