A Comparative Study to Reveal Earnings Management in Emerging Markets: Evidence from Tunisia and Iraq

Abstract

Purpose: The purpose of the study is to compare and evaluate Earnings Management in Tunisia and Iraq. Theoretical framework: Earnings Management is an important topic that has been studied by a significant number of researchers, as well as those who are interested in the accounting profession. Earnings Management has gotten a lot of attention from academics, professionals, and other interested parties in recent years (e.g. Kliestik et al., 2020; Rahman et al., 2021; Gamra &Ellouze, 2021) Design/methodology/approach: The sample includes ten banks listed on the Bourse of Tunisia and Iraq Stock Exchanges for the year 2017. We have used a model of Kothari et al., (2005) as a tool to measure Earnings Management in both markets. Findings: The result of the study indicates that companies listed in the two markets exercise Earnings Management. Practices for managing earnings are used to either enhance, decrease, or balance out earnings. Research, Practical & Social implications: the approaches to Earnings Management take considerably different directions. As a result, the trend in Tunisia was among of profit growth. in contrast, the companies listed in (ISE) engage in Earnings Management with the intent of cutting profits. The evident indecait that taxation on businesses, political pressure from governments, and other factors may all be contributing factors to rising or falling earnings management practies. Originality/value: the fact, our current study is the first to compare earnings management in companies operate in both the markets of Tunisia and Iraq.

Analyzing the Dynamics of Islamic Stock Market Indices in Several Muslim Countries

“…show that international phenomena are not proven to always apply in certain countries or have an impact on other stock markets. Wu (2020) and Flayyih & Khiari (2022) show that stock market integration in East and Southeast Asia is not as strong as expected, despite the government's promotion of financial market collaboration and integration. The interconnectedness of financial markets is due more to the influence of global markets than to individual markets.…”

The Interest of the Supreme Audit Institution in Sustainable Economic, Social and Environmental Development on the Audit Quality Performance

“…The economic dimension of SD revolves around the current and future repercussions of the economy on the environment (Flayyih and Khiari 2022). It also aims at increasing the welfare of society to the maximum extent and eliminating poverty by the optimal exploitation and employment of natural resources.…”

The Mediating Role of the Balanced Scorecard in the Relationship Between Internal Control and the Financial Reports Quality

“…The ICS has witnessed an important gradual development to meet the rapid and successive developments in economic life, as it is no longer just a means of ensuring the preservation of cash from theft and embezzlement (Ashbaugh-Skaife et al, 2008). But has evolved to include a set of policies and procedures that help the management achieve its objectives efficiently and effectively (Flayyih and Khiari 2022). IC consists of a set of elements that contribute to achieving the objectives of the economic unit, and as a result of this interest, the process of evaluating (Pakurár et al, 2019).…”