Depressing earnings management in Palestinian corporations: the role of audit quality, audit committee, and accounting conservatism

Q4 Economics, Econometrics and Finance
Muiz Abu Alia, Islam Abdeljawad, Mohammad N. S. Yaaqbeh
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引用次数: 5

Abstract

The influence of audit quality, the existence of an audit committee, and accounting conservatism in depressing earnings management (EM) were examined in this study while controlling for board characteristics, financial leverage, and client's company size. A regression model on a sample of 184 firm-year observations of 34 companies listed on Palestine Exchange (PEX) between 2011 and 2016 was employed. Based on the results, the independent variables demonstrated negative association to discretionary accruals, measured by four modified versions of Jones model, as a proxy for EM; in other words, the variables were effective in depressing EM and consequently, in enhancing the financial statement quality. A similar negative association was also demonstrated by board size and chief executive officer (CEO) duality. Meanwhile, financial leverage and EM showed a robust positive association suggesting that Palestinian corporations employed EM mainly to influence creditors' decisions. Policy makers should consider the results presented in this study to improve regulations related to reporting and governance.
令人沮丧的巴勒斯坦公司盈余管理:审计质量、审计委员会和会计稳健性的作用
在控制董事会特征、财务杠杆和客户公司规模的同时,本研究考察了审计质量、审计委员会的存在和会计稳健性对抑制盈余管理的影响。采用了一个回归模型,对2011年至2016年间在巴勒斯坦交易所(PEX)上市的34家公司的184个公司年度观察结果进行了抽样。基于结果,自变量与可自由支配应计项目呈负相关,通过四个修正版本的Jones模型测量,作为EM的代理;换句话说,这些变量有效地抑制了EM,从而提高了财务报表的质量。董事会规模和首席执行官(CEO)的双重性也表明了类似的负面关联。同时,金融杠杆和新兴市场表现出强大的正相关关系,表明巴勒斯坦公司利用新兴市场主要是为了影响债权人的决策。政策制定者应考虑本研究的结果,以改进与报告和治理相关的法规。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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来源期刊
International Journal of Revenue Management
International Journal of Revenue Management Economics, Econometrics and Finance-Economics and Econometrics
CiteScore
1.40
自引率
0.00%
发文量
4
期刊介绍: The IJRM is an interdisciplinary and refereed journal that provides authoritative sources of reference and an international forum in the field of revenue management. IJRM publishes well-written and academically rigorous manuscripts. Both theoretic development and applied research are welcome.
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