Volume : V, Issue : II, February - 2016

Market Efficiency and Creative Accounting– Some Issues

Miss Jutimala Bora, Prof Ashit Saha

Abstract :

<p> Accounting is a process which guides a business organization to run its activity in a safer direction. User groups being too many, and for that matter the financial reporting process of companies have been frequently facing the hurdle of satisfying different such user groups with their diversified needs. Satisfying the desires of share holders regarding high profits, dividends may ing in problems of high taxes, demand for higher wages and bonus etc. On the other hand lower profit trend may have a negative image in the minds of the investors regarding investment choice. Therefore, this requires the accountant to maintain a balance in between according to the needs of the situation. To do this accountant relies on the techniques of creative accounting. Existence of creative accounting has raised many questions regarding the efficiency of market. Concept of market efficiency requires the stock prices to reflect all the relevant information for the investors and financial reports are the most important information medium of a company among all. On the other hand, creative accounting leads to the concealment of actual financial result of the company and therefore both the concept of market efficiency and creative accounting are standing on the two dichotomous ends. This has been taken as the rationale of the present study. The study has been undertaken with the oad objective of determining the existence of creative accounting among the companies selected for the study and also to find an association in between creative accounting and market efficiency. The study covers the companies listed in the NSE.</p>

Keywords :

Article: Download PDF   DOI : 10.36106/ijsr  

Cite This Article:

Miss Jutimala Bora, Prof Ashit Saha Market Efficiency and Creative AccountingSome Issues International Journal of Scientific Research, Vol : 5, Issue : 2 February 2016


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