The Practice of Creative Accounting on the Jordanian Banking Sector: A Case Study in the Northern Region

Abstract

This study aims to identify the practice of creative accounting on the Jordanian banking sector. The sample of this study comprised 150 selected from three banks in the northern region of Jordan. These banks are Cairo Amman Bank, Arab Bank, and Jordan Bank, whereas a questionnaire survey was designed and distributed to them. A total of 121 questionnaires were retrieved that are valid for statistical analysis formed about 80.7% of overall distributed questionnaires; and the questionnaires have been analyzed using SPSS statistical software. The results of the study indicate that there is a statistical significant relationship between the practice of creative accounting and both the profitability and the size of the Jordanian commercial banks. This study recommended the Jordanian commercial banks to protect their profitability through different policy instead of practice creative accounting.

Keywords: Creative Accounting; Jordanian Commercial Bank; Profitability; Size

Australian Academy of Accounting and Finance Review, vol 3, issue 3, July 2017, pp 129-139