Academy of Strategic Management Journal (Print ISSN: 1544-1458; Online ISSN: 1939-6104)

Abstract

The Impact of Financial Performance on Earnings Management Practice Behavior(An Empirical Study on Financial Companies in Jordan)

Author(s): Ashraf Mohammad Salem Alrjoub, Salam Nawaf Almomani, Atallah Ahmad Al-Hosban, Mahmoud Izzat Allahham

The current study examines the impact of financial performance on earnings management practice behavior at the Jordanian public shareholding financial companies listed in the Amman stock exchange. The study model addresses the relationship between several independent variables represented in the companies' financial performance and some other variables and the dependent variable described in the practice of earnings management behavior at the Jordanian public shareholding financial companies listed in Amman stock exchange. The research findings proved the practice of earnings management behavior by several sectors at a different level. They found a statistically significant correlation between the financial performance variables and the response of earnings management practice at the public shareholding financial companies. The study also confirmed that Jordanian public shareholding financial companies had practiced earnings management during the study period, with a percentage of companies that practice earnings management is less than the rate of not practicing it.

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