Earning management, institutional ownership and performance : evidence from Amman Stock Exchange

Author

al-Nusur, Usamah Jamal

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

Business Administration

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