Author(s): Hiba Ibrahim Radi Al-Dweik, Ali Al-Thuneibat
Purpose: The main purpose of this research is to investigate the impact of intangible assets and fair value measurement at levels one and two on earnings management. Design/methodology/approach: Content analysis of the financial reports of a sample of 13 commercial banks listed on Amman stock exchange with a 91 observation over seven years from 2012 till 2018 was used. The study used descriptive statistics and multiple regression to test the hypotheses and analyze the data. Findings: The results of the study revealed that there is an insignificant impact of the independent variables including intangible assets and fair value measurement at levels one and two on earning management. Research limitations/implications: The study concentrated on the financial sector due to the specific regulations and the specific characteristics related to it. However, the sample size is the same as the population size, which is 13 banks, therefore the size appears to be small. Practical implications: Based on the research results and considering the required continuing development in accounting standards, the researchers would recommend the commercial banking industry to encourage the application of all requirements of IFRS13: Fair value Measurement and IAS38 and Intangible Assets, 2004. Moreover, to improve the entity's financial reporting process and enhance the quality of earnings, there is a need for the continuous improvement in corporate governance mechanisms and internal controls. Originality/value: Up to the knowledge of the researchers, this is a pioneer study which investigates the impact of intangible assets and fair value measurement at levels one and two on earning management.