Gross profit manipulation through classification shifting : evidence from the Egyptian environment
Author
Source
Journal of Commercial and Environmental Studies
Issue
Vol. 12, Issue 4 (31 Oct. 2021), pp.185-240, 56 p.
Publisher
Suez Canal University Faculty of Commerce
Publication Date
2021-10-31
Country of Publication
Egypt
No. of Pages
56
Main Subjects
Economics & Business Administration
Topics
Abstract EN
The existing studies about classification shifting in the income statements concentrate mainly on the misclassification of core expenses items as non- recurring expenses items, in order to manipulate core earnings.
This study aims to extend the previous studies of classification shifting by examining the potential shifting of not only expenses items but, also, revenue items in order to inflate gross profit.
By using a sample of 494 Egyptian listed firm-years observations in the period from 2016 to 2018, this study investigates the manipulation of gross profit through the shifting of both Costs of Goods Sold (COGS) to Selling, General and Administrative (SG&A) expenses and, also, the shifting of other Operating Incomes (OI) to total operating revenues.
The results indicate that Egyptian listed firms are more likely to engage in classification shifting of revenues but not in classification shifting of expenses.
Further, this study provides evidence of the impact of institutional ownership on classification shifting of expenses and, also, the impact of governmental ownership on the classification shifting of revenues.
American Psychological Association (APA)
Izzat, Amr Nazih Mahmud. 2021. Gross profit manipulation through classification shifting : evidence from the Egyptian environment. Journal of Commercial and Environmental Studies،Vol. 12, no. 4, pp.185-240.
https://search.emarefa.net/detail/BIM-1368768
Modern Language Association (MLA)
Izzat, Amr Nazih Mahmud. Gross profit manipulation through classification shifting : evidence from the Egyptian environment. Journal of Commercial and Environmental Studies Vol. 12, no. 4 (Oct. 2021), pp.185-240.
https://search.emarefa.net/detail/BIM-1368768
American Medical Association (AMA)
Izzat, Amr Nazih Mahmud. Gross profit manipulation through classification shifting : evidence from the Egyptian environment. Journal of Commercial and Environmental Studies. 2021. Vol. 12, no. 4, pp.185-240.
https://search.emarefa.net/detail/BIM-1368768
Data Type
Journal Articles
Language
English
Notes
-
Record ID
BIM-1368768