Impact of Improvements to the International Accounting Standards on Earnings Management in the Jordanian Industrial Corporations

Authors

  • Ali M. Al-Ghazzawi Al-Hussein bin Talal University
  • Sliman S. Alsoboa Al-Hussein bin Talal University

Keywords:

Accounting, Finance, International Accounting Standards, JIC, Management

Abstract

This study investigates the practices of earnings management in Jordanian Industrial Corporations (JIC) after the mandatory adoption of the Improvements of the International Accounting Standards (IASs) on 1st January, 2005. The Modified Jones model was used to measure earnings management. The binomial test and Pearson correlation test were used to test the hypotheses. It was discovered that JIC practiced earnings management for the period, 2005-2013,by 50%. It was also discovered that earnings management decreased in the 2008-2010 Financial Crisis that occurred, in JIC. Overall, the results suggest that the improvements to the IASs did not prevent earnings management in these corporations.

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Published

2019-03-12

How to Cite

Al-Ghazzawi, A. M., & Alsoboa, S. S. (2019). Impact of Improvements to the International Accounting Standards on Earnings Management in the Jordanian Industrial Corporations. Journal of Accounting and Finance, 16(2). Retrieved from https://articlegateway.com/index.php/JAF/article/view/1007

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Section

Articles