Impact of Creative Accounting on Shareholders Wealth

Abstract

This project aims to evaluate and examine the effect of the independent variable creative accounting on the dependent variable stockholders wealth. The sample covers 40 non-financial companies listed in Egypt Stock Exchange (EGX100) during the period 2017 to 2020. In this research modified jones model is going to be used to measure the independent variable which is the creative accounting and the log of shareholders equity is going to be the measure of the dependent variable shareholders wealth. The results found that there is no relationship between creative accounting and shareholders wealth. The research recommends to use more than 40 non-financial companies to investigate more the relationship between creative accounting and shareholders wealth or, using different types of companies like, financial companies as a sample.