IDEAS home Printed from https://ideas.repec.org/a/pal/palcom/v11y2024i1d10.1057_s41599-024-04114-x.html
   My bibliography  Save this article

Exploring the linkages between anti-money laundering guidelines and earnings manipulation techniques

Author

Listed:
  • Ruba Subhi Hamed

    (Alfaisal University)

  • Wasim Khalil Al-Shattarat

    (Gulf University for Science and Technology)

  • Basiem Khalil Al-Shattarat

    (Prince Sultan University)

  • Mariem Mejri

    (Prince Sultan University)

Abstract

The objective of this research is to investigate how adherence to anti-money laundering (AML) regulations affects the utilisation of accrual-based earnings management (AEM) and real earnings management (REM) strategies in the Middle East and North Africa (MENA) region. This study uses the System Generalized Method of Moment method to control for endogeneity due to omitted variables of 430 firms (4300 firm-year observations) from 2012 to 2021. The findings indicate that adhering to AML regulations results in a decrease in both aggressive AEM and REM. Our findings suggest a potential relationship between AML regulations and reduced earnings management, which warrants further investigation. By emphasising the importance of identifying accounting red flags and promoting greater transparency and accountability, our study supports a more radical perspective on the fight against corruption and money laundering.

Suggested Citation

  • Ruba Subhi Hamed & Wasim Khalil Al-Shattarat & Basiem Khalil Al-Shattarat & Mariem Mejri, 2024. "Exploring the linkages between anti-money laundering guidelines and earnings manipulation techniques," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-10, December.
    • Handle: RePEc:pal:palcom:v:11:y:2024:i:1:d:10.1057_s41599-024-04114-x
    DOI: 10.1057/s41599-024-04114-x
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/s41599-024-04114-x
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1057/s41599-024-04114-x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    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:pal:palcom:v:11:y:2024:i:1:d:10.1057_s41599-024-04114-x. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: https://www.nature.com/ .

    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.