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The Impact of Sustainable Financial Data Governance, Political Connections, and Creative Accounting Practices on Organizational Outcomes

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  • Tha’er Amjed Mahmoud Ababneh

    (Department of Accounting and Finance, Cyprus International University, Via Mersin 10, Lefkosa 0090, Northern Cyprus, Turkey)

  • Mehmet Aga

    (Department of Accounting and Finance, Cyprus International University, Via Mersin 10, Lefkosa 0090, Northern Cyprus, Turkey)

Abstract

Decision-making and financial information quality are key facets of corporate sustainability. The literature is devoid of inquiries investigating the collective impact of sustainable financial data governance and political connections on creative accounting practices, the quality of financial reporting and decision-making effectiveness. The present study integrates these critical factors by obtaining survey data (n = 180) from publicly listed firms in Amman Stock Exchange, Jordan. By applying partial least squares structural equation modeling (PLS-SEM), this study found that (i) sustainable financial data governance does not influence creative accounting practices, (ii) political connections influences the level of firms creative accounting practices, (iii) creative accounting practices influences the quality of financial and accounting information reporting, and (iv) the quality of financial and accounting information reporting influences firms decision-making effectiveness. Implications, limitations, and future research courses are discussed.

Suggested Citation

  • Tha’er Amjed Mahmoud Ababneh & Mehmet Aga, 2019. "The Impact of Sustainable Financial Data Governance, Political Connections, and Creative Accounting Practices on Organizational Outcomes," Sustainability, MDPI, vol. 11(20), pages 1-16, October.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:20:p:5676-:d:276436
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    3. Nofan Hamed Al-Olimat & Mohannad Obeid Al Shbail, 2021. "The Mediating Effect of External Audit Quality on the Relationship Between Corporate Governance and Creative Accounting," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 12(1), pages 149-157, January.
    4. Maria Kovacova & Lenka Hrosova & Pavol Durana & Jakub Horak, 2022. "Earnings management model for Visegrad Group as an immanent part of creative accounting," Oeconomia Copernicana, Institute of Economic Research, vol. 13(4), pages 1143-1176, December.
    5. Camelia Oprean-Stan & Sebastian Stan & Vasile Brătian, 2020. "Corporate Sustainability and Intangible Resources Binomial: New Proposal on Intangible Resources Recognition and Evaluation," Sustainability, MDPI, vol. 12(10), pages 1-23, May.
    6. AGÂRBICEANU Simona Marcela & PĂUN Tatiana, 2021. "The Need For A Paradigm Shift In Finance: Sustainable Corporate Finance," Management of Sustainable Development, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 13(1), pages 33-38, June.
    7. Sebastian Emanuel Stan & Camelia Oprean-Stan & Aurel Mihail Țîțu, 2020. "Digitalization - Sustainable Development Convergence: Metrics And Effects In Romania," Management of Sustainable Development, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 12(1), pages 1-9, June.
    8. Cristina TIMOFTE (COCA) & Simona-Maria TANASA (BRINZARU) & Dan-Andrei COCA, 2020. "A Bibliometric Analysis Of Creative Accounting Research," Annales Universitatis Apulensis Series Oeconomica, Faculty of Sciences, "1 Decembrie 1918" University, Alba Iulia, vol. 1(22), pages 96-102.

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