Fair value and earnings management evidence from the Kuwaiti market
Other Title(s)
القيم العادلة للأدوات المالية و إدارة الأرباح : دراسة تجريبية من السوق الكويتي
Author
Source
Journal of the Gulf and Arabian Peninsula Studies
Issue
Vol. 47, Issue 180 (31 Mar. 2021), pp.49-68, 20 p.
Publisher
Kuwait University Academic Publication Council
Publication Date
2021-03-31
Country of Publication
Kuwait
No. of Pages
20
Main Subjects
Financial and Accounting Sciences
Abstract EN
Objectives: The present study aims to test whether the accounting information of fair values provided by International Accounting Standard (IAS) No.
39 is used for earnings management purposes in Kuwaiti market.
Method: This study performs regression analysis using data related to a number of Kuwaiti firms to examine whether firms engage in gains trading related to Available-for-Sale (AFS) securities, and whether these gains trading, if any, arc associated with proxies of firm's political visibility, executive compensation, and credit financing.
Results: The empirical results reported show evidence of gain trading practices by Kuwaiti firms, and that this gain trading is significantly related to firm size (e.g., political cost) and profitability (i.e., executive compensa¬tion), but not related to firms debt ratio.
Conclusion: The study is supposed to be of a value to the international accounting literature as it provides, for the first time, empirical evidence about the practice of gains trading from the Gulf Cooperation Council (GCC) region.
The study’s results are also expected to be of a value to regulators and policy makers for better regulatory supervision over corporate financial reporting.
American Psychological Association (APA)
al-Hajiri, Mashari Ubayd. 2021. Fair value and earnings management evidence from the Kuwaiti market. Journal of the Gulf and Arabian Peninsula Studies،Vol. 47, no. 180, pp.49-68.
https://search.emarefa.net/detail/BIM-1442829
Modern Language Association (MLA)
al-Hajiri, Mashari Ubayd. Fair value and earnings management evidence from the Kuwaiti market. Journal of the Gulf and Arabian Peninsula Studies Vol. 47, no. 180 (2021), pp.49-68.
https://search.emarefa.net/detail/BIM-1442829
American Medical Association (AMA)
al-Hajiri, Mashari Ubayd. Fair value and earnings management evidence from the Kuwaiti market. Journal of the Gulf and Arabian Peninsula Studies. 2021. Vol. 47, no. 180, pp.49-68.
https://search.emarefa.net/detail/BIM-1442829
Data Type
Journal Articles
Language
English
Notes
Record ID
BIM-1442829