The consequence of earnings management through discretionary accruals on the value relevance in Saudi Arabia

This study explores the relationship between company earnings management and the relative value relevance of book value and earnings. The differential effect on the value relevance of earnings management (EM) from 2014 to 2018 for all firms listed on the Saudi Stock Exchange (Tadawul) is investigate...

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Autor principal:	Basiem Al-Shattarat
Formato:	article
Lenguaje:	EN
Publicado:	Taylor & Francis Group 2021
Materias:	value relevance earnings management book value short-term and long-term discretionary accruals Business HF5001-6182 Management. Industrial management HD28-70
Acceso en línea:	https://doaj.org/article/9d3cece436524465b841b8d283e0debe
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spelling	oai:doaj.org-article:9d3cece436524465b841b8d283e0debe2021-12-02T13:40:14ZThe consequence of earnings management through discretionary accruals on the value relevance in Saudi Arabia2331-197510.1080/23311975.2021.1886473https://doaj.org/article/9d3cece436524465b841b8d283e0debe2021-01-01T00:00:00Zhttp://dx.doi.org/10.1080/23311975.2021.1886473https://doaj.org/toc/2331-1975This study explores the relationship between company earnings management and the relative value relevance of book value and earnings. The differential effect on the value relevance of earnings management (EM) from 2014 to 2018 for all firms listed on the Saudi Stock Exchange (Tadawul) is investigated by short-term versus long-term discretionary accruals. For firms whose EM is considered as an indication of its discretionary accruals, it is anticipated that earnings’ value relevance would be lower than firms that do not consider EM. The results show that EM discretionary accruals influence the value relevance of book value and earnings for the long-term compared to the short-term. The study’s finding is expected to shed light on applying the quality of firms’ financial reporting in protecting stakeholders’ interests by providing them with credible information free from earnings manipulations.Basiem Al-ShattaratTaylor & Francis Grouparticlevalue relevanceearnings managementbook valueshort-term and long-term discretionary accrualsBusinessHF5001-6182Management. Industrial managementHD28-70ENCogent Business & Management, Vol 8, Iss 1 (2021)
institution	DOAJ
collection	DOAJ
language	EN
topic	value relevance earnings management book value short-term and long-term discretionary accruals Business HF5001-6182 Management. Industrial management HD28-70
spellingShingle	value relevance earnings management book value short-term and long-term discretionary accruals Business HF5001-6182 Management. Industrial management HD28-70 Basiem Al-Shattarat The consequence of earnings management through discretionary accruals on the value relevance in Saudi Arabia
description	This study explores the relationship between company earnings management and the relative value relevance of book value and earnings. The differential effect on the value relevance of earnings management (EM) from 2014 to 2018 for all firms listed on the Saudi Stock Exchange (Tadawul) is investigated by short-term versus long-term discretionary accruals. For firms whose EM is considered as an indication of its discretionary accruals, it is anticipated that earnings’ value relevance would be lower than firms that do not consider EM. The results show that EM discretionary accruals influence the value relevance of book value and earnings for the long-term compared to the short-term. The study’s finding is expected to shed light on applying the quality of firms’ financial reporting in protecting stakeholders’ interests by providing them with credible information free from earnings manipulations.
format	article
author	Basiem Al-Shattarat
author_facet	Basiem Al-Shattarat
author_sort	Basiem Al-Shattarat
title	The consequence of earnings management through discretionary accruals on the value relevance in Saudi Arabia
title_short	The consequence of earnings management through discretionary accruals on the value relevance in Saudi Arabia
title_full	The consequence of earnings management through discretionary accruals on the value relevance in Saudi Arabia
title_fullStr	The consequence of earnings management through discretionary accruals on the value relevance in Saudi Arabia
title_full_unstemmed	The consequence of earnings management through discretionary accruals on the value relevance in Saudi Arabia
title_sort	consequence of earnings management through discretionary accruals on the value relevance in saudi arabia
publisher	Taylor & Francis Group
publishDate	2021
url	https://doaj.org/article/9d3cece436524465b841b8d283e0debe
work_keys_str_mv	AT basiemalshattarat theconsequenceofearningsmanagementthroughdiscretionaryaccrualsonthevaluerelevanceinsaudiarabia AT basiemalshattarat consequenceofearningsmanagementthroughdiscretionaryaccrualsonthevaluerelevanceinsaudiarabia
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The consequence of earnings management through discretionary accruals on the value relevance in Saudi Arabia

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