A THEORETICAL FRAMEWORK FOR USING SWOT ANALYSIS TO ANALYZE THE ROLE OF FINANCIAL ACCOUNTING IN THE CONTEXT OF FINANCIAL ENGINEERING INNOVATIONS
الباحث الأول:
Maryam Qais Ali
الباحثين الآخرين:
Youssef Fadhil Shlash
المجلة:
Manuscript on the Sustainable Economics, Finance and Management
تاريخ النشر:
14 نوفمبر، 2025
مختصر البحث:
The emergence of financial engineering aimed to provide unconventional solutions to companies' financial problems, but the expansion of the use of financial engineering tools caused many companies to close and widen their losses during the 2008 fina…
The emergence of financial engineering aimed to provide unconventional solutions to companies' financial problems, but the expansion of the use of financial engineering tools caused many companies to close and widen their losses during the 2008 financial crisis. Meanwhile, many accusations were leveled against the ineffectiveness of the financial accounting system in dealing with the shortcomings of these tools. This led to an increase in the practice of accounting manipulation by financial report preparers. Therefore, this research aims to assess the ability of financial accounting systems to deal with innovations in financial engineering, and to establish a SWOT model for all aspects of the relationship. Therefore, the concept of this research is to study the scope of financial accounting to deal with financial engineering innovation as a basis for development. In its role in responding to these innovative challenges, the research relies on inductive methods to study some phenomena and observations, such as: the development of financial engineering, financial engineering, and creative accounting. There is a gap between the speed of financial innovation and the response of financial accounting to it; and the rewards of this gap lie in aspects. Therefore, a SWOT model was established to examine the ability of the financial accounting system to respond to the challenges of financial engineering. The researchers rely on exploratory significance research as a research strategy. The results show that, despite the importance of financial engineering innovation, it is one of the main reasons that led to the bankruptcy of many large companies and the recent financial crisis, as well as many accusations of improper handling of the accounting system. In financial engineering innovation, researchers use SWOT analysis to identify the most significant advantages, disadvantages, and challenges, and to address the challenges of financial engineering and the opportunities of the financial accounting system. The researchers suggest that the accounting education system needs to develop to improve accountants' ability to respond to financial engineering innovation, and that the accounting standards issuance process should be managed based on accounting standards for financial engineering innovation rather than rules. In addition, the efforts of all parties involved in the financial accounting system, including professional organizations, should be combined to address the risks of financial engineering.
