Accounting And Finance | Rationale And Research Objectives

Running Head: ACCOUNTING AND FINANCE
ACCOUNTING AND FINANCE
Name of the Student
Name of the University
Author Note

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Table of Contents
Research Title.............................................................................................................................2
Rationale....................................................................................................................................2
Research Objectives...................................................................................................................3
Research Question......................................................................................................................3
Literature Review.......................................................................................................................4
Theoretical Framework..........................................................................................................4
Accounting Ethics..................................................................................................................6
Accounting Ethics Importance in Company..........................................................................7
Ethics in Accounting and Performance of Organization........................................................8
Impact of Accounting Ethics on the Company’s Financial Performance..............................9
Factors in Relationship between Financial Performance and Quality of Financial Reporting
..............................................................................................................................................13
Research Methods....................................................................................................................14
Conclusion & Recommendations.............................................................................................14
Reference..................................................................................................................................16

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Research Title
The research paper aims to find "role of ethics in financial reporting quality and
financial performance of company".
Rationale
The various collapses of corporates in last two decades have resulted into serious
consequences to the employees, public, investors and other stakeholders. This has generated
credibility issues. The 21st century has seen disheartening as well as surprising number of the
accounting scandals, which implies that there is significant failure in management oversight
as well as process of reporting, despite existence of professional ethics standards. In response
to these failures, it has become apparent for organizations to critically review the relationship
in between role of accounting and required accounting professionals (Martínez‐Ferrero,
Garcia‐Sanchez & Cuadrado‐Ballesteros, 2015). Companies are re-examining the ethics in
profession of accounting with the renewed interest in the training and developing the
individuals for reinforcing robust ethical behavior and principles. Ethical dilemmas are the
common in the workplace that originate from circumstances where individual or group
should make the decisions between the two options, in which response is not always white
and black. It is important for the managers, owners as well as investors for learning about
accounting ethics and its functions for avoiding any legal and financial dilemmas because of
financial statements misrepresentations (Tschopp & Huefner, 2015).
There is various research conducted is this topic, however these researchers have not
provided clear assertions about the most vital variables, which impact ethics of the
accounting professionals in financial reporting quality and company’s financial performance.
Hence, it is problematic for ascertaining real determinants of the ethics of accounting among
the professionals and understanding the drives that encourages them for practicing and

3ACCOUNTING AND FINANCE
upholding the ethical behavior in their roles. Moreover, it becomes significant to note that the
ethics in financial reporting is not only requirement of compliance rather it is rooted within
the culture of organizations (Kaptein, 2015). This research study seeks to fills research gap
and resolve the problem. Further, the finding of this research study can be used by the
decision-makers and managers of organization for determining best courses of the action,
which they can take for ensuring compliance with the ethical standards in financial
information preparation and the presentation. Moreover, this study can also be used by the
researchers, who wants to do further research in this particular field in the future (Tschopp &
Nastanski, 2014).
Research Objectives
The major objectives of this research study include following points:
 To discuss different theories related with accounting ethics and the financial reporting
quality.
 To discuss about ethics in accounting.
 To discuss importance of ethics in company.
 To discuss ethics in accounting and financial performance of the company.
 To discuss impact of the ethics of accounting on financial performance of entity.
 To discuss factors in relationship between financial performance and quality of the
financial reporting.
Research Question
This research paper aims to answer following question:
 What is the role of ethics in financial reporting and financial performance of
company?