Earning management, institutional ownership and performance : evidence from Amman Stock Exchange
Author
Source
Journal of Financial, Accounting and Managerial Studies
Issue
Vol. 6, Issue 2 (s) (31 Dec. 2019), pp.161-186, 26 p.
Publisher
Université Larbi Ben M'hidi Oum El Bouaghi Laboratoire COFIFAS
Publication Date
2019-12-31
Country of Publication
Algeria
No. of Pages
26
Main Subjects
Topics
Abstract EN
The study explores the effect of earning management and institutional ownership on the performance of Jordanian manufacturing companies listed on the Amman stock exchange (ASE).
The study sample included (46) manufacturing companies Out of a total of (63) companies listed on (ASE) over the five years period (2013-2017).
To test the study hypotheses and to achieve its objectives, data was obtained from Amman Stock Exchange (ASE) database and annual reports issued by Jordanian manufacturing public shareholding companies.
Thus, earning management (which have been extracted from the use of Jones Modified Model, to measure the discretionary accruals as a proxy for earning management) and institutional ownership are presented as independent variables, while the firm’s performance is articulated as the dependent variable using ROA, and ROE as performance measure.
In addition, two control variables that include firm’s size, and debt ratio.
The study reveals different results by using different performance measures.
When using the first model used (ROA) the results found that EM has no significant effect on return on assets and the direction of the relationship is negative.
Institutional investors do not affect return on assets and the direction of the relationship is positive.
However, when the second model (ROE) used the results found that EM has no significant effect on return on equity, and the direction of the relationship is negative.
Institutional investors have significant effect on return on equity and the direction of the relationship is positive.
Regarding control variables the results showed that both controlling variables are significant in return on assets and return on equity.
American Psychological Association (APA)
al-Nusur, Usamah Jamal. 2019. Earning management, institutional ownership and performance : evidence from Amman Stock Exchange. Journal of Financial, Accounting and Managerial Studies،Vol. 6, no. 2 (s), pp.161-186.
https://search.emarefa.net/detail/BIM-909640
Modern Language Association (MLA)
al-Nusur, Usamah Jamal. Earning management, institutional ownership and performance : evidence from Amman Stock Exchange. Journal of Financial, Accounting and Managerial Studies Vol. 6, no. 2 (Special issue) (Dec. 2019), pp.161-186.
https://search.emarefa.net/detail/BIM-909640
American Medical Association (AMA)
al-Nusur, Usamah Jamal. Earning management, institutional ownership and performance : evidence from Amman Stock Exchange. Journal of Financial, Accounting and Managerial Studies. 2019. Vol. 6, no. 2 (s), pp.161-186.
https://search.emarefa.net/detail/BIM-909640
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references : p. 182-186
Record ID
BIM-909640