ممارسات المحاسبة الابداعية وأثرها على ربحية السهم في الشركات الصناعية المدرجة في بورصة عمان Creative Accounting Practices and Its Impact on Earnings Per Share in Industrial Companies Listed on Amman Stock Exchange (ASE)

النمرين, عبدالله محمود (2019) ممارسات المحاسبة الابداعية وأثرها على ربحية السهم في الشركات الصناعية المدرجة في بورصة عمان Creative Accounting Practices and Its Impact on Earnings Per Share in Industrial Companies Listed on Amman Stock Exchange (ASE). Masters thesis, جامعة الشرق الاوسط.

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Abstract

This study aimed at identifying the role of industrial companies in creative accounting practices and determining the reality of practicing creative accounting through earnings management and income smoothing, In addition to investigate the impact of creative accounting methods represented by (Earnings Management and Income Smoothing) on earnings per share in the Jordanian industrial companies listed on the Amman Stock Exchange in the existence of control variables (the company size measured by the natural logarithm of total assets and return on assets). The model of Kothari et al., (2005) was adapted to measure earnings management, and the model of Eckel (1981) was adopted to measure income smoothing. In order to the study hypotheses and achieve its objectives, the researcher used quantitative analytical method. The study was applied on the public shareholding industrial companies listed on the Amman Stock Exchange during the period from 2013 to 2017. This study selected 48 companies as study sample depending on the purposive sample. The multiple regression analysis was used to test the hypotheses of the study. The study revealed a number of results, the most important of which are: Jordanian industrial companies practice creative accounting through earnings management, while there is no statistically significant level of creative accounting practice through income smoothing, it was found that there are 64.6% of the companies included in the study sample practice creative accounting methods through earnings management, and 45.8% of the companies practice income smoothing in the period of the study. It was also found that there is a statistically significant impact of the creative accounting practices on earnings per share in the industrial companies listed on the Amman Stock Exchange, and there is a statistically significant impact of earnings management on earnings per share in the industrial companies listed on the Amman Stock Exchange, while there is ن no statistically significant impact of income smoothing on earnings per share in the industrial companies listed on the Amman Stock Exchange. The study concluded a set of recommendations, the most important of which are: Urge the managements of Jordanian industrial companies to use the earnings management measurement models to measure the level of practicing creative accounting and recommend the external auditors to show the percentage of profit management in the financial reports because of their significant impact on earnings per share. Keywords: Creative Accounting Practices, Earnings Management, Income Smoothing, Earnings per Share.

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