The effect of debt and corporate diversification on opportunistic earning management : evidence from Egyptian companies

الملخص EN

The current research aims at investigating the effect of debt and diversification on opportunistic earning management, measured by modified jones model and the model developed by Rodriguez and Hemmen in (2010).

Using a sample of 30 companies extracted from index EGX50 EWI, the statistical results revealed no significant relationship between diversification and opportunistic earning management.

However, there is a positive relation between interaction variable between independent variables, debt and diversification (DEBT*Div.) and opportunistic earning management.

Also, it was found a negative relation between DEBT, IDEBT and opportunistic earning management.