EconPapers    
Economics at your fingertips  
 

Measurement of creative accounting by Transparency and Disclosure Index (TDI) method in automobile industry

Ervin Denich () and Daniel Hajdu ()
Additional contact information
Ervin Denich: Lecturer, Budapest Business School,
Daniel Hajdu: accounting expert, Nokia Solutions and Networks Kft

Public Finance Quarterly, 2021, vol. 66, issue 3, 381 - 396

Abstract: Investigation of relationship between corporate governance and creative accounting came to the front after some accounting scandals (like Enron, WorldCom or Satyam). Corporate governance is an actual topic to discuss due to the its correlation to creative accounting. Application of creative accounting techniques might suggest some weaknesses of a company. In this study we investigate the relationship between corporate governance and creative accounting by applying Transparency and Disclosure Index (TDI) method, which enables to evaluate corporate structure, transparency of operation and disclosure of company related information, based on publicly available data. Then, in order to measure the accounting manipulation, we analyse financial performance measures. Furthermore, we perform a correlation analysis to assess the strength of relationship between corporate governance and creative accounting. As a conclusion, we are able to describe a medium negative correlation between the two aspects under investigation.

Keywords: accounting regulation; creative accounting; corporate governance; correlation analysis (search for similar items in EconPapers)
JEL-codes: M40 M41 (search for similar items in EconPapers)
Date: 2021
References: Add references at CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://www.penzugyiszemle.hu/upload/pdf/penzugyi_ ... nichE-Hajdu_21_3.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pfq:journl:v:66:y:2021:i:3:p:381-396

Access Statistics for this article

Public Finance Quarterly is currently edited by Erzsebet Nemeth

More articles in Public Finance Quarterly from State Audit Office of Hungary
Bibliographic data for series maintained by Pal Peter Kolozsi ( this e-mail address is bad, please contact ).

 
Page updated 2021-10-14
Handle: RePEc:pfq:journl:v:66:y:2021:i:3:p:381-396