“…In 1991, the KSE required all listed firms to be compliant with International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS) (Warf & Vincent, 2007). In this regard, Gerged et al (2017) argue that the increasing trend of CED in the Arab MENA emerging markets, including Kuwait, is attributed to the implementation of IFRS that enforced by the stock exchanges in order to attract more inwards foreign investments, particularly after the global financial crisis and the fall of oil prices (Lyra et al, 2017). Therefore, the significance of this study stems from the environmental challenges that are facing Kuwait as an oil-reliant economy coupled together with the newly enacted environmental laws and regulations that have led to cost increases on companies which might have either stimulated managers to manipulate their earnings numbers to display a financial distress (See Patten and Trompeter, 2003), or motivated them to be ethical, honest, and trustworthy (See Kim et al, 2012).…”