Validation of the Model of Factors Affecting Creative Accounting with Emphasis on Technical and Environmental Indicators: A Structural Equation Modeling Approach
Keywords:
Creative accounting, technical indicators, environmental indicators, structural equation modeling, Tehran Stock ExchangeAbstract
This study aims to empirically validate a model of factors affecting creative accounting with emphasis on technical and environmental indicators in firms listed on the Tehran Stock Exchange. This applied, descriptive–survey research adopted a quantitative confirmatory design. The statistical population comprised financial managers, independent auditors, and accounting experts of listed companies, from whom 384 respondents were selected using Cochran’s formula. Data were collected through a researcher-developed questionnaire with 65 items rated on a five-point Likert scale. Content validity and confirmatory factor analysis established validity, while Cronbach’s alpha and composite reliability confirmed reliability. Data were analyzed using partial least squares structural equation modeling (PLS-SEM) with 5,000 bootstrap resamples. Results revealed that technical indicators (β = 0.47, t = 8.92, p < 0.001) and environmental indicators (β = 0.42, t = 7.85, p < 0.001) have significant positive effects on creative accounting. The structural model showed strong explanatory power (R² = 0.62) and satisfactory overall fit (GoF = 0.51). Creative accounting in Iran’s capital market emerges from the significant interaction of technical and environmental factors, underscoring the need for integrated technical reforms and strengthened institutional and regulatory environments.
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Copyright (c) 2025 Mohammad Reza Moghadam (Author); Faegh Ahmadi (Corresponding author); Seyed Nima Valinia (Author)
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