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The Impact of Earnings Management on Dividend Policy: Evidence From Kuwait

Author

Listed:
  • Sinan S. Abbadi
  • Murad Y. Abuaddous
  • Hanady T Bataineh
  • Abdulla E Muttairi

Abstract

This study has two main objectives. The first is to examine the impact of Earnings Management (EM) on dividend policy for the Kuwait¡¯s industrial and service sectors. The second is to sieve out the possible explanations for the conflicting results regarding this topic. Using Modified Jones Model, a sample of 46 companies listed on the Kuwait Stock Exchange with a total of (184) firm-year observations form the period 2011-2016 reveals an absence of a significant relation between EM and dividend policy. In addition, this paper posits a possible relationship between EM, dividend policy and market maturity.

Suggested Citation

  • Sinan S. Abbadi & Murad Y. Abuaddous & Hanady T Bataineh & Abdulla E Muttairi, 2020. "The Impact of Earnings Management on Dividend Policy: Evidence From Kuwait," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 11(5), pages 518-526, October.
    • Handle: RePEc:jfr:ijfr11:v:11:y:2020:i:5:p:518-526
    DOI: 10.5430/ijfr.v11n5p518
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    References listed on IDEAS

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