Does earnings quality instigate financial flexibility? New evidence from emerging economy

The purpose of this study is to examine the effect of financial factors on earnings management and earnings quality. Moreover, the study examines the role of earnings management as a mediator in the effect of the financial factors on earnings quality. It provides some empirical evidences from an emerging market, especially from the Jordanian market. The study uses a panel data analysis method over a ten-year period (2009-2018). The study population includes all Jordanian insurance companies listed in Jordanian market at the end of the year 2019, and the study sample consists of 20 Jordanian insurance companies (a complete population), giving a total of 200 observations for each variable. The results indicate that all financial factors in the model combined affect the earnings management and earnings quality. In addition, earnings management negatively affects earnings quality, and earnings management fully mediates the effect of financial factors on earnings quality. The study advises that policy makers ought to follow good legislation to curb the company's earnings management activities. Hence, the policy makers need to apply regulations which enrich the company’s effectiveness and efficiency whilst protecting the investors and other interested parties from risk.

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Female CEOs and Core Earnings Quality: New Evidence on the Ethics Versus Risk-Aversion Puzzle

Journal of Business Ethics ◽

10.1007/s10551-018-3918-y ◽

2018 ◽

Vol 160 (2) ◽

pp. 515-534 ◽

Cited By ~ 11

Author(s):

Alaa Mansour Zalata ◽

Collins Ntim ◽

Ahmed Aboud ◽

Ernest Gyapong

Keyword(s):

Risk Aversion ◽

Earnings Quality ◽

Female Ceos ◽

Core Earnings ◽

New Evidence ◽

Versus Risk

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Financial Flexibility, Debt and Earnings Quality

The Academic Society of Global Business Administration ◽

10.38115/asgba.2016.13.1.281 ◽

2016 ◽

Vol 13 (1) ◽

pp. 281-309

Author(s):

Young-Chul Kim ◽

Jong-Hyun Kim ◽

Heung-Joo Jeon

Keyword(s):

Earnings Quality ◽

Financial Flexibility

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Does Sticky Cost Behavior Affect Earnings Quality? Evidence From Egypt

International Journal of Accounting and Financial Reporting ◽

10.5296/ijafr.v11i2.18634 ◽

2021 ◽

Vol 11 (2) ◽

pp. 17

Author(s):

Mohamed Aly Wahdan ◽

Ashraf Khalifa Ahmed ◽

Marwa Saber Hamoda Alsayed

Keyword(s):

Developing Countries ◽

Earnings Quality ◽

Emerging Countries ◽

Financial Accounting ◽

Managerial Accounting ◽

Listed Firms ◽

Cost Behavior ◽

New Evidence ◽

Quality Evidence

This paper seeks to extend the literature on cost behavior by providing additional evidence on sticky cost behavior in developing countries namely Egypt. Moreover, it aims to determine to what extent sticky cost behavior affects earnings quality. The paper depends on a sample consists of 38 listed firms in the Egyptian Exchange over the period from 2004 to 2017. The findings reveal that total costs respond asymmetrically to the equivalent change in sales in six of the nine examined sectors. Furthermore, both patterns of sticky cost behavior, stickiness and anti-stickiness, negatively affect earnings quality. Therefore, managers, investors, and managerial accountants should take into account sticky cost behavior when making their decisions. This study contributes to the stream of research that integrates managerial accounting with financial accounting by combining sticky cost behavior with earnings quality. In addition, it extends the line of research related to the impacts of sticky cost behavior. Moreover, it gives new evidence on sticky cost behavior and its impacts from one of emerging countries.

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My mother-in-law does not like it: resources, social norms, and entrepreneurial intentions of women in an emerging economy

Small Business Economics ◽

10.1007/s11187-021-00594-2 ◽

2022 ◽

Author(s):

Shamsul Karim ◽

Caleb Kwong ◽

Mili Shrivastava ◽

Jagannadha Pawan Tamvada

Keyword(s):

Resource Availability ◽

Emerging Economy ◽

Entrepreneurial Intentions ◽

Structural Constraints ◽

Family Status ◽

Women Entrepreneurship ◽

Mixed Methods Approach ◽

It Resources ◽

Normative Constraints ◽

New Evidence

AbstractThis paper provides new evidence at the intersectionality of gender, family status, and culture by focusing on a previously little researched group of middle-class women in an emerging economy. While the existing literature examines both structural and normative constraints for women entrepreneurship, little is known about the gains from relaxing structural constraints for women when compared to men. In addition to examining this new question, the paper sheds light on the binding nature of normative constraints for women entrepreneurship that persist in a patriarchal developing economy even when structural constraints are significantly eased. Using a mixed-methods approach, the empirical results suggest that higher resource availability differentially impacts the entrepreneurial intentions of women when compared to men indicating the strong presence of normative barriers that inhibit their entrepreneurship. These normative barriers emerge through the roles people play within women life spheres inhibiting their entrepreneurial intentions.

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Does Earnings Quality Affect Companies’ Performance? New Evidence from the Jordanian Market

Journal of Asian Finance Economics and Business ◽

10.13106/jafeb.2020.vol7.no11.033 ◽

2020 ◽

Vol 7 (11) ◽

pp. 33-43

Author(s):

Isam SALEH ◽

◽

Malik ABU AFIFA ◽

Fares ALSUFY

Keyword(s):

Earnings Quality ◽

New Evidence

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The Effects of Corporate Governance (CG) on Saudi Arabian Companies' Earnings Quality

Corporate Governance and Its Implications on Accounting and Finance - Advances in Finance, Accounting, and Economics ◽

10.4018/978-1-7998-4852-3.ch002 ◽

2021 ◽

pp. 27-58

Author(s):

Zahra Al Nasser

Keyword(s):

Corporate Governance ◽

Audit Committee ◽

Research Study ◽

Stock Exchange ◽

Earnings Quality ◽

Generalized Method Of Moments ◽

Saudi Arabian ◽

Accounting Expertise ◽

New Evidence

High earnings quality (EQ) is one of the company's pillars of long-term success in building investor confidence. This study investigates whether or not corporate governance (CG) affects the EQ of non-financial companies listed on the Saudi Arabian Stock Exchange known as Tadawul. This research study uses data from a sample of 482 firm-year observations of these companies in the period from 2009 to 2013. The author adopts the Generalized Method of Moments (GMM) regression model. This research study contributes to the current literature by providing new evidence of the effect of CG on the EQ of the Saudi Arabian non-financial companies listed on the Tadawul. Specifically, not all CG attributes affect each company's EQ in the same way. This study's findings show that important CG attributes, which enhance the company's EQ, are the number of the company's independent directors, the separation of the dual role between the company's CEO and chairperson, and the financial or accounting expertise of the members of the company's audit committee members.

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