IDEAS home Printed from https://ideas.repec.org/a/hur/ijaraf/v7y2017i2p1-13.html
   My bibliography  Save this article

Income Smoothing Behavior at the Times of Political Crises

Author

Listed:
  • Ahmad N. Obaidat

Abstract

This study aimed to investigate the effect of political crises on income smoothing behavior in non-financial firms listed on Amman Stock Exchange (ASE) during the period 2006-2015. Chi-Square, Correlation and Logistic Regression tests indicated that income smoothing practice exists, and is more likely in the periods of political crises. Results also indicated no effects of the firm size, return on assets (ROA) and financial leverage on income smoothing behavior, but it could not reveal an ultimate result concerning the effect of the firm sector.

Suggested Citation

  • Ahmad N. Obaidat, 2017. "Income Smoothing Behavior at the Times of Political Crises," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 7(2), pages 1-13, April.
    • Handle: RePEc:hur:ijaraf:v:7:y:2017:i:2:p:1-13
    as

    Download full text from publisher

    File URL: http://hrmars.com/hrmars_papers/Article_01_Income_Smoothing_Behavior.pdf
    Download Restriction: no
    File URL: http://hrmars.com/hrmars_papers/Article_01_Income_Smoothing_Behavior.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Patell, Jm, 1989. "On The Usefulness Of Earnings And Earnings Research - Lessons And Directions From 2 Decades Of Empirical-Research - Discussion," Journal of Accounting Research, Wiley Blackwell, vol. 27, pages 193-201.
    2. Srinidhi, Bin & Ronen, Joshua & Maindiratta, Ajay, 2001. "Market Imperfections as the Cause of Accounting Income Smoothing--The Case of Differential Capital Access," Review of Quantitative Finance and Accounting, Springer, vol. 17(3), pages 283-300, November.
    3. Ronen, J & Sadan, S, 1975. "Classificatory Smoothing - Alternative Income Models," Journal of Accounting Research, Wiley Blackwell, vol. 13(1), pages 133-149.
    4. Raul Iniguez & Francisco Poveda, 2004. "Long-run abnormal returns and income smoothing in the Spanish stock market," European Accounting Review, Taylor & Francis Journals, vol. 13(1), pages 105-130.
    5. Thomas Dilger & Sabine Graschitz, 2015. "Influencing Factors on Earnings Management, Empirical Evidence from Listed German and Austrian Companies," International Journal of Business and Economic Sciences Applied Research (IJBESAR), International Hellenic University (IHU), Kavala Campus, Greece (formerly Eastern Macedonia and Thrace Institute of Technology - EMaTTech), vol. 8(2), pages 69-86, October.
    6. Ping-Sheng Koh, 2005. "Institutional Ownership and Income Smoothing: Australian Evidence," Accounting Research Journal, Emerald Group Publishing, vol. 18(2), pages 93-110, September.
    7. Copeland, Rm, 1968. "Income Smoothing," Journal of Accounting Research, Wiley Blackwell, vol. 6, pages 101-116.
    8. Dimitrios Kousenidis & Christos Negakis & Ioannis Papanastasiou, 2003. "The Value Relevance of Earnings and Income Smoothing: Greek Evidence on Causality Effects," European Research Studies Journal, European Research Studies Journal, vol. 0(3-4), pages 85-94, July - De.
    9. Linda H. Chen, 2013. "Income Smoothing, Information Uncertainty, Stock Returns, and Cost of Equity," Review of Pacific Basin Financial Markets and Policies (RPBFMP), World Scientific Publishing Co. Pte. Ltd., vol. 16(03), pages 1-34.
    10. Rusmin Rusmin, 2013. "Income smoothing behaviour by Asian transportation firms," Managerial Auditing Journal, Emerald Group Publishing, vol. 28(1), pages 23-44, January.
    11. Ahmad-Zaluki, Nurwati A. & Campbell, Kevin & Goodacre, Alan, 2011. "Earnings management in Malaysian IPOs: The East Asian crisis, ownership control, and post-IPO performance," The International Journal of Accounting, Elsevier, vol. 46(2), pages 111-137, June.
    12. Manel Hessayri & Malek Saihi, 2015. "Monitoring earnings management in emerging markets," Journal of Economic and Administrative Sciences, Emerald Group Publishing Limited, vol. 31(2), pages 86-108, November.
    13. Ben-Hsien Bao & Da-Hsien Bao, 2004. "Income Smoothing, Earnings Quality and Firm Valuation," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 31(9-10), pages 1525-1557.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jean-Louis Paré & Frédéric Demerens, 2011. "Détecter les manipulations financières en France : Le cas d'une PME cotée sur Alternext," Post-Print hal-00650559, HAL.
    2. Silhan, Peter A., 2014. "Income smoothing from a Census X-12 perspective," Advances in accounting, Elsevier, vol. 30(1), pages 106-115.
    3. Abdullah Mamun & Md Didarul Alam & George Tannous, 2019. "Did the regulatory changes of 1999 and 2001 affect income smoothing behavior of US banks?," Review of Quantitative Finance and Accounting, Springer, vol. 52(4), pages 1011-1041, May.
    4. Takashi Obinata & Kazuyuki Suda, 2006. "Value Relevance of the Multi-step Income Statement in Japan," CARF F-Series CARF-F-061, Center for Advanced Research in Finance, Faculty of Economics, The University of Tokyo.
    5. Takashi Obinata & Kazuyuki Suda, 2006. "Value Relevance of the Multi-step Income Statement in Japan," CIRJE F-Series CIRJE-F-403, CIRJE, Faculty of Economics, University of Tokyo.
    6. Inten Meutia & Devia Septyani & Mohamad Adam, 2021. "The Effect of Income Smoothing and CSR Disclosureon Market Performance," International Journal of Business and Economic Sciences Applied Research (IJBESAR), International Hellenic University (IHU), Kavala Campus, Greece (formerly Eastern Macedonia and Thrace Institute of Technology - EMaTTech), vol. 14(1), pages 58-68, June.
    7. Jeong‐Bon Kim & Jeff J. Wang & Eliza Xia Zhang, 2021. "Does real earnings smoothing reduce investors’ perceived risk?," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 48(9-10), pages 1560-1595, October.
    8. Gomez Biscarri, Javier & Lopez Espinosa, German, 2008. "The influence of differences in accounting standards on empirical pricing models: An application to the Fama-French model," Journal of Multinational Financial Management, Elsevier, vol. 18(4), pages 369-388, October.
    9. Curtis Nicholls, 2016. "The impact of SEC investigations and accounting and auditing enforcement releases on firms’ cost of equity capital," Review of Quantitative Finance and Accounting, Springer, vol. 47(1), pages 57-82, July.
    10. Pegah Dehghani & Ros Zam Zam Sapian, 2014. "Sectoral herding behavior in the aftermarket of Malaysian IPOs," Venture Capital, Taylor & Francis Journals, vol. 16(3), pages 227-246, July.
    11. Ramesh Chandra Das & Chandra Sekhar Mishra & Prabina Rajib, 2018. "Firm-specific Parameters and Earnings Management: A Study in the Indian Context," Global Business Review, International Management Institute, vol. 19(5), pages 1240-1260, October.
    12. Shanshan Pan & Michael Lacina & Haeyoung Shin, 2019. "Income Classification Shifting and Financial Analysts’ Forecasts," Review of Pacific Basin Financial Markets and Policies (RPBFMP), World Scientific Publishing Co. Pte. Ltd., vol. 22(02), pages 1-48, June.
    13. Oriol Amat & Catherine Gowthorpe, 2004. "Creative accounting: Nature, incidence and ethical issues," Economics Working Papers 749, Department of Economics and Business, Universitat Pompeu Fabra.
    14. Hartwell, Christopher A. & Malinowska, Anna P., 2019. "Informal institutions and firm valuation," Emerging Markets Review, Elsevier, vol. 40(C), pages 1-1.
    15. Lucia Michalkova & Martin Cepel & Katarina Valaskova & Zuzana Vincurova, 2022. "Earnings Quality and Corporate Life Cycle Before the Crisis. A Study of Transport Companies Across Europe," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 24(61), pages 782-782, August.
    16. Iatridis, George, 2012. "Hedging and earnings management in the light of IFRS implementation: Evidence from the UK stock market," The British Accounting Review, Elsevier, vol. 44(1), pages 21-35.
    17. Joseph Drew, 2018. "Playing for keeps: local government distortion of depreciation accruals in response to high-stakes public policy-making," Public Money & Management, Taylor & Francis Journals, vol. 38(1), pages 57-64, January.
    18. Muhammad Rofiqul Islam & Abdullah Al Mehdi, 2024. "Impacts of National Cultures on Managerial Decisions of Engaging in Core Earnings Management," Papers 2407.16854, arXiv.org.
    19. Maria Jose Arcas & Caridad Martí, 2016. "Financial Performance Adjustment in English Local Governments," Australian Accounting Review, CPA Australia, vol. 26(2), pages 141-152, June.
    20. In Tae Hwang & Kang Sung Hur & Sun Min Kang, 2018. "Does the IFRS Effect Continue? An International Comparison," Sustainability, MDPI, vol. 10(12), pages 1-20, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hur:ijaraf:v:7:y:2017:i:2:p:1-13. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Hassan Danial Aslam (email available below). General contact details of provider: http://hrmars.com/index.php/pages/detail/Accounting-Finance-Journal .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.