Creative accounting practice and business performance : evidence from Pakistan

Ali Malik, J. Liu, O. Kyriacou

    Research output: Contribution to journalArticlepeer-review

    1 Citation (Scopus)


    This paper explores the issue of creative accounting and evidence of its use in Pakistan. The financial characteristics of Pakistani companies, officially or publically identified for using some form of creative accounting are investigated and explored. Through the use of financial ratios and a control sample of companies identified for not having used creative accounting are analysed and compared. Survey results show statistically significant differences in sample-control comparison of ratios and indicate that there appears to be a convergence of opinions on the use of such practices. Further, the findings provide evidence that financial characteristics, as measured by ratios, could be used as a tool to identify companies that are likely to be involved in creative accounting and therefore form a basis for measuring, controlling and influencing how company performance may be perceived.
    Original languageEnglish
    Pages (from-to)228-241
    JournalInternational Journal of Business Performance Management
    Issue number3
    Publication statusPublished - 2011


    • creative accounting
    • gearing
    • Pakistan
    • performance measurement
    • ratio analysis


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