IDEAS home Printed from https://ideas.repec.org/a/ibn/ijbmjn/v13y2018i4p99.html
   My bibliography  Save this article

The Relationship between Earnings Management and Stock Price Liquidity

Author

Listed:
  • Shehadeh Arar
  • Emad Al-Sheikh
  • Abdullah Hardan

Abstract

This study aimed to examine the relationship between Earning's Management and the Stock Price Liquidity for a selected sample of (49) Jordanian Service Companies listed on Amman stock market for The period of (2010-2015), the importance of this study comes from The Obvious effect of Earning's Management on the Companies Performances by manipulating the Financial reports in Positive or Negative way, therefore this study attempted to examine such impact or Relationship between the dependent variable (Stock Liquidity) and The independent variable (Earning's Management), Using the Jones Modified Model (1995) through the description.Analysis to find out The Earning's Management Practice and using The (SPSS) analysis System to Prove The study assumption.The outcomes of this study indicated a non-significant relationship between the Earning's Management and the Stock Price Liquidity in The Jordanian Service Companies. In addition there were the Recommendation of using a concept of linking the corporate Governance with some Earning’s Management, through some Accounting application approved by the international financial Standards to attain the use of positive Earning’s Management within Companies to improve the overall performance and serve all the Users of the financial reports.

Suggested Citation

  • Shehadeh Arar & Emad Al-Sheikh & Abdullah Hardan, 2018. "The Relationship between Earnings Management and Stock Price Liquidity," International Journal of Business and Management, Canadian Center of Science and Education, vol. 13(4), pages 1-99, March.
    • Handle: RePEc:ibn:ijbmjn:v:13:y:2018:i:4:p:99
    as

    Download full text from publisher

    File URL: http://www.ccsenet.org/journal/index.php/ijbm/article/download/73097/40934
    Download Restriction: no
    File URL: http://www.ccsenet.org/journal/index.php/ijbm/article/view/73097
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Jayesh Kumar, 2004. "Does Ownership Structure Influence Firm Value? Evidence from India," Finance 0406008, University Library of Munich, Germany.
    2. Roychowdhury, Sugata, 2006. "Earnings management through real activities manipulation," Journal of Accounting and Economics, Elsevier, vol. 42(3), pages 335-370, December.
    3. Nicky J. Welton & Howard H. Z. Thom, 2015. "Value of Information," Medical Decision Making, , vol. 35(5), pages 564-566, July.
    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. Sticca, Ralph Melles & Nakao, Silvio Hiroshi, 2019. "Hedge accounting choice as exchange loss avoidance under financial crisis: Evidence from Brazil," Emerging Markets Review, Elsevier, vol. 41(C).
    2. Kimouche Bilal, 2021. "Accounting Reforms And Accounting Quality: Evidence From Algeria," Review of Economic and Business Studies, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, issue 27, pages 33-53, June.
    3. Johannes Thesing & Patrick Velte, 2021. "Do fair value measurements affect accounting-based earnings quality? A literature review with a focus on corporate governance as moderator," Journal of Business Economics, Springer, vol. 91(7), pages 965-1004, September.
    4. Vincenzo Varriale & Antonello Cammarano & Francesca Michelino & Mauro Caputo, 2021. "Sustainable Supply Chains with Blockchain, IoT and RFID: A Simulation on Order Management," Sustainability, MDPI, vol. 13(11), pages 1-23, June.
    5. Valeria Costantini & Francesco Crespi & Giovanni Marin & Elena Paglialunga, 2016. "Eco-innovation, sustainable supply chains and environmental performance in European industries," LEM Papers Series 2016/19, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    6. Sawssen Khlifi & Ghazi Zouari, 2021. "The Impact of CEO Overconfidence on Real Earnings Management: Evidence from M&A Transactions," Journal of Accounting and Management Information Systems, Faculty of Accounting and Management Information Systems, The Bucharest University of Economic Studies, vol. 20(3), pages 402-424, September.
    7. Wei, Lang & Zhang, Yiling, 2023. "Nonfinancial indicators in identifying stock price crash risk," Finance Research Letters, Elsevier, vol. 52(C).
    8. Lee, Alice J. & Ames, Daniel R., 2017. "“I can’t pay more” versus “It’s not worth more”: Divergent effects of constraint and disparagement rationales in negotiations," Organizational Behavior and Human Decision Processes, Elsevier, vol. 141(C), pages 16-28.
    9. Hussain, Hadia & Murtaza, Murtaza & Ajmal, Areeb & Ahmed, Afreen & Khan, Muhammad Ovais Khalid, 2020. "A study on the effects of social media advertisement on consumer’s attitude and customer response," MPRA Paper 104675, University Library of Munich, Germany.
    10. A. G. Fatullayev & Nizami A. Gasilov & Şahin Emrah Amrahov, 2019. "Numerical solution of linear inhomogeneous fuzzy delay differential equations," Fuzzy Optimization and Decision Making, Springer, vol. 18(3), pages 315-326, September.
    11. Cyril Chalendard, 2015. "Use of internal information, external information acquisition and customs underreporting," Working Papers halshs-01179445, HAL.
    12. Arun Advani & William Elming & Jonathan Shaw, 2023. "The Dynamic Effects of Tax Audits," The Review of Economics and Statistics, MIT Press, vol. 105(3), pages 545-561, May.
    13. Tianjiao Zhao & Xiang Xiao & Qinghui Dai, 2021. "Transportation Infrastructure Construction and High-Quality Development of Enterprises: Evidence from the Quasi-Natural Experiment of High-Speed Railway Opening in China," Sustainability, MDPI, vol. 13(23), pages 1-23, December.
    14. Li, Chunyu & Lou, Chenxin & Luo, Dan & Xing, Kai, 2021. "Chinese corporate distress prediction using LASSO: The role of earnings management," International Review of Financial Analysis, Elsevier, vol. 76(C).
    15. Navarro-García, Juan Carlos & Madrid-Guijarro, Antonia, 2016. "Real economic activity and accounting information in Spanish construction and real estate firms," Revista de Contabilidad - Spanish Accounting Review, Elsevier, vol. 19(1), pages 21-30.
    16. Philippe Aghion & Ufuk Akcigit & Matthieu Lequien & Stefanie Stantcheva, 2017. "Tax simplicity and heterogeneous learning," CEP Discussion Papers dp1516, Centre for Economic Performance, LSE.
    17. Marie Bjørneby & Annette Alstadsæter & Kjetil Telle, 2018. "Collusive tax evasion by employers and employees. Evidence from a randomized fi eld experiment in Norway," Discussion Papers 891, Statistics Norway, Research Department.
    18. Shan Lu & Peng Wu & Lei Gao & Richard Gifford, 2023. "Are State-Owned Enterprises Equally Reliable Information Suppliers? An Examination of the Impacts of State Ownership on Earnings Management Strategies of Chinese Enterprises," Mathematics, MDPI, vol. 11(4), pages 1-26, February.
    19. Chuangen Gao & Shuyang Gu & Jiguo Yu & Hai Du & Weili Wu, 2022. "Adaptive seeding for profit maximization in social networks," Journal of Global Optimization, Springer, vol. 82(2), pages 413-432, February.
    20. Koessler, Frederic & Laclau, Marie & Renault, Jérôme & Tomala, Tristan, 2022. "Long information design," Theoretical Economics, Econometric Society, vol. 17(2), May.

    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

    Statistics

    Access and download statistics

    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:ibn:ijbmjn:v:13:y:2018:i:4:p:99. 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: Canadian Center of Science and Education (email available below). General contact details of provider: https://edirc.repec.org/data/cepflch.html .

    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.