Global Journal of Management and Business Research, D: Accounting and Auditing, Volume 22 Issue 2

2. Is there a role for creative accounting practices in reducing market risk in Jordanian trading companies? 3. Is there a role for creative accounting practices in reducing operating risks in Jordanian businesses? b) Objectives of the study This study aims to demonstrate the role of creative accounting in reducing corporate risk to identify the importance of creative accounting practices in reducing the financial risks to Jordanian businesses. The main objective of this study is to: 1. Recognize the role of creative accounting practices in reducing credit risks in Jordanian businesses. 2. Recognize the role of creative accounting practices in reducing market risk in Jordanian commercial companies. 3. Recognize the role of creative accounting practices in reducing operating risks in Jordanian businesses. c) Importance of the study The importance of the study stems from the importance of using creative accounting to reduce corporate risk because it is considered a modern way of dealing with this type of risk and preventing it from occurring, and minimizing its impact. The importance of this study is at the following points: 1. The use of creative accounting methods helps the management of enterprises to demonstrate the outcome of the activity and financial position to achieve their short- and long-term objectives, including the financing conditions imposed by financial institutions. 2. Minimizing financial risks by using creative accounting in enterprises works to satisfy investors with their financial situation, showing the financial position of the enterprise as best as possible, persuade shareholders to make good use of available resources, and support economic and financial stability, thereby increasing rewards and incentives allocated to them, and attracting new investors. 3. Creative accounting methods help enterprises improve their reputation in the market, influence the share price, maximize the financial value of their shares in financial markets, thereby reducing the amount of risks companies face ostensibly, and create a good impression of profit levels, making it easier for enterprises to issue new shares to raise capital, and use their claims in cases of ownership or acquisition. 4. It is hoped that the findings and recommendations of this study will benefit researchers and scholars to undertake other studies related to the role of creative accounting practices in reducing the financial risks of Jordanian businesses. d) Study Terms Creative Accounting: Is the process of manipulating accounting figures by taking the opportunity to eliminate adherence to accounting rules, measurement alternatives, and disclosure applications to move financial lists from what they should be to what their authors would prefer to be. (Abdelrahman Abdelfattah Mohammed, Hexagon Thoughts Journal, Ain Shams University, Faculty of Commerce), And that they use methods, methods, procedures, concepts, or standards of new theories that are unfamiliar, which can be used to interpret, analyze or solve an accounting problem facing management, where the accountant has distinct capabilities. (Marrazek and Buher, 2017). Financial corporate risk: Financial risks are considered to be the source of potential losses in financial markets due to economic fluctuations and are usually accompanied by the leverage system since the financial institution is in a position to meet its current asset obligations. (Tariq Allah Khan Habib, 2018) They can be defined as a higher risk of exploitation due to recourse to indebtedness, that is, to bringing in financial resources in the form of debts that would adversely affect an enterprise's productivity. (Sami, 2018) Credit risk: Risks arising from the potential inability or knowledge of the borrower's or third party's willingness to fulfill its obligations at times specified by the bank resulting in economic losses, failure to fulfill its obligations to the bank on time, The bank's revenues and capital are affected Loans are the most important sources of credit expenses ", resulting in losses to the bank extending to lost opportunity costs, fees and costs related to the follow-up of non-performing loans. (Krasen, 2019) Market risk: The risk of global and domestic market volatility arising from adverse movements in the value of financial instruments and changes in the level or volatility of interest rates, foreign exchange rates, commodities, stocks, and other securities in all their forms and liquidity risks (Khamisi, Abdulkader, 2017). Operational risk: They are risks that cause losses that adversely affect economic units' revenues and capital as a result of inefficiency or failure in internal operations or personnel, or weak information systems resulting from inadequate surveying of monetary units' working environment or technical risks due to non-conformity with modern technology, or fraud resulting from a defect in internal control systems or intangible risks that are highly likely to occur s productivity ", such as the risks of knowledge and relationships resulting from ineffective cooperation, which reduce the productivity of knowledge among workers, It affects the quality of service or commodity and the reputation of economic units and may arise as a result of making erroneous decisions that do not keep pace with recent changes (Soldier, 2017). 82 Global Journal of Management and Business Research Volume XXII Issue II Version I Year 2022 ( )D © 2022 Global Journals Research in Role of Creative Accounting Practices to Reduce Financial Risks in Jordanian Commercial Companies