Redirigiendo al acceso original de articulo en 24 segundos...
ARTÍCULO
TITULO

The Association between Earnings Management and Capital Structure: An Empirical Study on Jordanian Firms Listed in Amman Stock Exchange

Manar Al-Mohareb    
Mahmoud Alkhalaileh    

Resumen

The purpose of this study is to investigate the association between earnings management, measured by the absolute unexpected accruals and the firm?s capital structure. The study sample consists of 44 manufacturing Jordanian firms listed in the Amman Stock Exchange during the 5 years (2008-2012), a total of 220 (firm-year) observations. The study provides evidence supporting the hypothesized association between capital structure and the absolute unexpected accruals. Consistent with most prior related studies? results, findings indicate a statistically positive association between earnings management and a firm?s financial leverage which is used as a proxy of the firm capital structure. This result hold for one measure of financial leverage (long?term-debt to equity ratio). However, when we use alternative leverage measure (total debt to assets ratio) as a capital structure proxy, the association between earnings management and leverage remains positive but statistically insignificant at the conventional level. Consistent with most related prior studies? findings, the empirical evidence also shows that capital structure is negatively associated with profitability return on equity and positively related to firm size. The regression coefficients on both variables are statistically significant at the conventional level. Also, both external financing and investment opportunities, are positively and significantly associated with capital structure.Keywords: Earnings Management, Capital Structure, D/E Ratio, Unexpected Accruals, Profitability, Size, Amman Stock Exchange, Jordanian FirmsJEL Classifications: G32, G15, M41DOI: https://doi.org/10.32479/ijefi.8583

 Artículos similares

       
 
Fei Su, Lili Zhai and Jianmei Liu    
This study examines whether and how risk disclosures in Management Discussion and Analysis (MD&A) affected the stock price crash risk of China?s publicly listed firms over the period of 2017?2021. The empirical results show that risk disclosures with... ver más

 
Ahmad Mohammad Obeid Gharaibeh    
The current study aims to examine the determinants of the capital adequacy ratio (CAR) in the context of Jordanian banks through a literature review and analysis of empirical evidence. The aggregate data were obtained from Globaleconomy.com, the Financia... ver más

 
Uzair Bhatti and Noralfishah Sulaiman    
The purpose of this paper is to explore the impact of ESG sustainability practices (i.e., Environmental, Social, Governance/economic) on share performance. Moreover, the objective of the study is to investigate the sustainability practices with mediation... ver más

 
Kanyarat (Lek) Sanoran    
The Sarbanes?Oxley Act of 2002 (SOX) imposed stringent requirements on corporate executives to hold them more accountable for their management decisions. This act has ramifications for executive pay as well. This study investigates the lessening effects ... ver más

 
Jean Damascene Mvunabandi,Bomi Cyril Nomlala     Pág. 145 - 161
This article aims to obtain empirical evidence about the relationship between New Fraud Combined Theory with non-government organizations? financial statement fraud in South Africa. The population of this thesis research comprised 87 staff from 30 chosen... ver más