Master Study: Impact of Earnings Management on Investor's Sensitivity using Shareholders Value Creation
The earning management is one of the most important tools for the financial statements window dressing. Managers conduct earnings management through variety of methods to affect the decisions taken by the shareholders and the potential investors

 

Mohamed Samy El Deeb
Accounting Lecturer, PhD
Accounting Department, Faculty of Management Sciences
Modern Scinces and Arts University, Egypt

 

Nevine Sobhy Abdel Megeid
Accounting Lecturer, PhD, CMA
Accounting and Finance Dept.
Arab Academy for Science, Technology and Maritime Transport

 

This research aims to determine to what extend earnings management influence the shareholders’ value creation and to examine the relation between shareholder’s sensitivity and earnings management. The originality of this research consists in the fact that the researchers provide an overview of the earnings management and its effect of the shareholder’s sensitivity using the shareholders’ value creation as a mediator for that relation.

 

The researchers conducted the research through presenting literature review about the variables of the research and used a secondary data to investigate the relation between the variables of the research through constructing a regression model to fit within the Pharmaceutical companies that are listed in the Egyptian exchange market for years 2006-2013. To verify the research hypotheses, the Structure Equation Modeling and panel data analysis are used.

 

 

The results indicate that there is an association between earnings management and shareholders’ value creation and shows that the association between the shareholders’ value creation and investor’s sensitivity are strong. The results also indicate that there is a negative association between the earnings management and the investor sensitivity. The results are very logic since not all the investors are those knowledgeable of the earnings management measurements tools. The investors will be more sensitive toward the low earnings management practice by management

 

 

 

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الموضوعات ذات الصلة

سجل الدخول لتتمكن من التعليق

 

في المحاسبين العرب، نتجاوز الأرقام لتقديم آخر الأخبار والتحليلات والمواد العلمية وفرص العمل للمحاسبين في الوطن العربي، وتعزيز مجتمع مستنير ومشارك في قطاع المحاسبة والمراجعة والضرائب.

النشرة البريدية

إشترك في قوائمنا البريدية ليصلك كل جديد و لتكون على إطلاع بكل جديد في عالم المحاسبة

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محظور

جميع النصوص و الصور محمية بحقوق الملكية الفكرية و لا نسمح بالنسخ الغير مرخص

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