تأثير القدرة الإدارية على جودة الأرباح في شركات المساهمة السعودية: دراسة تطبيقية على قطاع المواد الأساسية

Abstract EN

This study aims to examine the effect of managerial ability on earnings quality.

The study sample consisted of 39 companies in Saudi Basic Materials Sector over the period 2013-2019.

In order to achieve the aim of this study, the managerial ability for manager was measured by MA-Score as suggested by Demerjian et al.

(2012).

Earnings quality was measured by accruals quality, earnings persistence, and earnings predictability.

The Ordinary Least Square (OLS) method was used to test the hypothesis of the study.

The results showed that although managerial ability has a negative and significant effect on accruals quality; however, it does have a positive and significant effect on earnings continuity and earnings predictability.

The study made a set of recommendations to boards of directors of the companies and capital market regulators.

Most notably the recommendation that Guiding Article 39 of the Corporate Governance Code (CGC) that is related to training and qualifying the management team members.

The study recommend that this guiding article should become mandatory in order to improve managerial ability, raise the efficiency of companies' performance and increase their earnings quality Such a change is expected to be reflected on the market efficiency, thus enhancing the confidence of its participants.