<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>This paper attempts to analyze the impact of some Algerian companies’ characteristics (size, activity sector, property, listing, and nature of financial statements) on the level of earnings management. The research employed 117 observations for 26 Algerian companies from 2016 to 2020 and used a multiple linear regression model and discretionary accounting accruals to measure earnings management. According to the findings, earnings management in Algeria is explained by the companies’ sizes, activity sectors, and stock market listing. However, the nature of financial statements and the ownership of the companies do not affect earnings management. These results are beneficial for regulators and auditors since they provide empirical evidence about the characteristics of companies that manipulate earnings. Consequently, they can enable them to take appropriate actions to enhance the quality of financial reports, whether when developing and reviewing accounting standards by regulators or when examining financial information by auditors.</p>
</abstract>

This paper attempts to analyze the impact of some Algerian companies’ characteristics (size, activity sector, property, listing, and nature of financial statements) on the level of earnings management. The research employed 117 observations for 26 Algerian companies from 2016 to 2020 and used a multiple linear regression model and discretionary accounting accruals to measure earnings management. According to the findings, earnings management in Algeria is explained by the companies’ sizes, activity sectors, and stock market listing. However, the nature of financial statements and the ownership of the companies do not affect earnings management. These results are beneficial for regulators and auditors since they provide empirical evidence about the characteristics of companies that manipulate earnings. Consequently, they can enable them to take appropriate actions to enhance the quality of financial reports, whether when developing and reviewing accounting standards by regulators or when examining financial information by auditors.

Earnings Management and Company Characteristics: Empirical Evidence from Algerian Companies

Scientific Bulletin

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

This paper attempts to analyze the impact of some Algerian companies’ characteristics (size, activity sector, property, listing, and nature of financial...

Earnings Management and Company Characteristics: Empirical Evidence from Algerian Companies

Published Online: Jun 18, 2022

Page range: 48 - 58

DOI: https://doi.org/10.2478/bsaft-2022-0006

Keywords
Earnings management, discretionary accruals, company characteristics, Algerian companies

© 2022 Bilal Kimouche, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Earnings Management and Company Characteristics: Empirical Evidence from Algerian Companies

Published Online: Jun 18, 2022

Page range: 48 - 58

DOI: https://doi.org/10.2478/bsaft-2022-0006

KeywordsEarnings management, discretionary accruals, company characteristics, Algerian companies

© 2022 Bilal Kimouche, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Keywords
Earnings management, discretionary accruals, company characteristics, Algerian companies