The Impact of the Companys Characteristics on Earnings Management Based on Accrual: A Case of the United Arab Emirates

The aim of this research is to explore the impact of the companys characteristics in earnings management. In more detail, explore the impact of the companys size, leverage, growth, turnover of assets and loss on accruals earnings management. In order to test the studys hypothesis, researchers used financial data of companies listed in the UAE markets (Abu Dhabi Financial Market and Dubai Financial Market). The researchers concluded that the companys characteristics do not affect accruals earnings management with the exception of turnover and loss. This result suggests that earnings management is only a decision taken by management and is therefore more related to management as people than the companys characteristics. This result also indicates that companies facing a loss tend to manage their earnings more than companies whose activity results positively.