The effect of financial distress on earnings management: Evidence from Egypt | ||
| المجلة العلمية للدراسات والبحوث المالية والتجارية | ||
| Volume 5, Issue 2 - Serial Number 1, July 2024, Pages 841-868 PDF (1.23 M) | ||
| Document Type: المقالة الأصلية | ||
| DOI: 10.21608/cfdj.2024.279558.1937 | ||
| Authors | ||
| ميار ممدوح خليل محمد* 1; إيمان سعد الدين2 | ||
| 1الأكاديمية العربية للعلوم والتكنولوجيا والنقل البحرى (ِAASTMT), | ||
| 2كلية التجارة جامعة بنى سويف | ||
| Abstract | ||
| The main research objective is to investigate the impact of financial distress on earnings management. the researcher uses secondary data available in the financial statements from a sample of 106 companies listed on the Egyptian Stock Exchange for ten years from 2013 to 2022. The study sample was extracted from 6 main sectors and excluded banks, insurance companies, and companies in the financial service sector as they have a special nature that governs their institutions. The study uses a Generalized method of moments (GMM) to test the research hypothesis as an appropriate method compared with the destiny of the least squares method (OLS). The findings showed a curvilinear relationship (U-shape) between financial distress and earnings management. In other words, the greater the financial distress, the lower the earnings management until the distress reaches a certain point, after which the relationship becomes positive, meaning that the greater the financial distress, the greater the earnings management. | ||
| Keywords | ||
| Financial distress; Earnings management; Egyptian listed companies | ||
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