Ashish Chaudhari
2015 International Journal of Management and Social Science Research Review   unpublished
The conceptual assertion, corporate governance, being the central and dynamic aspect of business in today's world concerning Economic value added (EVA) performance tool could be used as the top financial goal of measuring performance of the Indian corporate sector. In the wake of competitiveness of the companies, several applications of linking corporate governance with EVA in regard to the comparison of performance between inter-company and inter-branch operations, employees' stimulation and
more » ... ' stimulation and remuneration, corporate evaluation and investment efficiency evaluation have a significant impact on the creative accounting practice. Literature study on the accountants' attitude goaded for the creative accounting is rather based on the manipulation of transactions in the management domain than violations of the accounting rules falling within their domain demanding for ethical judgement. Creative accounting practices have helped in the boost of the share price both by reducing the apparent levels of borrowing, with the false notion of making the company look less risky while exaggerating the profit levels. The companies use such an approach in indulging themselves into destructive activities in the false notion of generating advantageous position in the takeover bids Thus, financial reporting by way of EVA has the merit of structuring transactions without deluding the stakeholders about the underlying economic performance of the company or influence contractual outcomes that depend on reported accounting numbers. The present paper shall find out how the linkages between the corporate governance and EVA as an regulation, could curb the tradition of putting forward the practice of creative accounting into the positive accounting theory and make the users aware of such a scope is the need of the hour. This study broadly aims at looking out for solutions in bridging the gap in existing knowledge of value based relationship between corporate governance and the wealth measure performance paving the way to mainstream of thinking on ethics without misuse of accounting standards. The study has also contributed to identify the scandals of corporate governance recoiled due to creative accounting by exploring various national and international relevant case studies that have precipitated significant implications on the Indian corporate sector.