The Effect of Earning Management on Dividend Payouts and the Mediating Role of Financial Leverage
Rashwan, A., Yousef Shaker Melhem, A., Nour, A., Atout, S. (2023). The Effect of Earning Management on Dividend Payouts and the Mediating Role of Financial Leverage. EKB Journal Management System, 2(1), 1-25. doi: 10.21608/jcese.2022.175204.1002
Abdul Rahman M. Rashwan; Aseel Yousef Shaker Melhem; Abdulnasr Ibrahim Nour; Sameh Atout. "The Effect of Earning Management on Dividend Payouts and the Mediating Role of Financial Leverage". EKB Journal Management System, 2, 1, 2023, 1-25. doi: 10.21608/jcese.2022.175204.1002
Rashwan, A., Yousef Shaker Melhem, A., Nour, A., Atout, S. (2023). 'The Effect of Earning Management on Dividend Payouts and the Mediating Role of Financial Leverage', EKB Journal Management System, 2(1), pp. 1-25. doi: 10.21608/jcese.2022.175204.1002
Rashwan, A., Yousef Shaker Melhem, A., Nour, A., Atout, S. The Effect of Earning Management on Dividend Payouts and the Mediating Role of Financial Leverage. EKB Journal Management System, 2023; 2(1): 1-25. doi: 10.21608/jcese.2022.175204.1002

The Effect of Earning Management on Dividend Payouts and the Mediating Role of Financial Leverage

مجلة العلوم التجارية والبيئية
Volume 2, Issue 1, March 2023, Page 1-25  XML PDF (723.24 K)
Document Type: المقالة الأصلية
DOI: 10.21608/jcese.2022.175204.1002
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Authors
Abdul Rahman M. Rashwan email 1; Aseel Yousef Shaker Melhem2; Abdulnasr Ibrahim Nour2; Sameh Atout2
1قسم العلوم الإدارية والمالية، الكلية الجامعية للعلوم والتكنولوجيا، غزة، فلسطين
2Department of Accounting, An-Najah National University, Nablus, Palestinian Authority
Abstract
This research aims to test the effect of earning management on dividend payout with a moderating role of financial leverage on this relationship in the banking sector in Palestine Exchange and Amman Stock Exchange during the period 2009 to 2018 with a total 210 firm year observations. (Yoon et al. 2006) model is used to measure earning management through discretionary accruals. The model is estimated using panel general least square. The results of the relationship between earning management and dividend payout in the Palestinian and Jordanian banking sector showed that there is a positive effect of practicing earning management on cash dividend payout, but this effect is not significant with total dividends and stock dividends. Leverage is positively and significantly affects the relationship between earnings management and cash dividend payout. The relationship is insignificant with other types of dividends. The implication of this study is that the relationship between the earning management and dividend policy is significant. That presence of significance relationship is not suitable for investors. Strongly recommend that there should not be any relationship between earning management and dividend policy. That significant relationship can be reduced by controlling on discretionary accruals. This research will help the management that by reducing the operational expenses of the companies will effectively manage their earnings. So, the impact of earning management on dividend policy can be reduced.
Keywords
Earning Management; Dividend payout; Leverage
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