THE IMPACT OF SURPLUS FREE CASH FLOW AND STOCK MARKET SEGMENTATIONS ON EARNINGS MANAGEMENT IN JORDAN: AGENCY—AND INSTITUTIONAL—THEORY PERSPECTIVES

  • Ahmad A Toumeh Universiti Sains Malaysia & Al-Zaytoonah University of Jordan
  • Sofri Yahya Universiti Sains Malaysia
  • Azlan Amran Universiti Sains Malaysia

Abstract

The current research aims at providing evidence concerning the influence of surplus free cash flow and stock market segmentations on income-increasing earnings management practices in Jordan. The results, using a sample of all non-financial companies listed on Amman Stock Exchange (ASE) over the period 2013-2017, confirm the research hypotheses. This is the first empirical attempt to explore the impact of stock market segmentations on earnings management. Further, this study adds value to scholarship by examining the effect of surplus free cash flow on earnings management for the first time in Jordan, which provides a valuable evidence for companies seeking to understand and reduce agency problems in Jordanian context.
Published
Apr 30, 2020
How to Cite
TOUMEH, Ahmad A; YAHYA, Sofri; AMRAN, Azlan. THE IMPACT OF SURPLUS FREE CASH FLOW AND STOCK MARKET SEGMENTATIONS ON EARNINGS MANAGEMENT IN JORDAN: AGENCY—AND INSTITUTIONAL—THEORY PERSPECTIVES. Management & Accounting Review (MAR), [S.l.], v. 19, n. 1, p. 169-212, apr. 2020. ISSN 2550-1895. Available at: <http://arionline.uitm.edu.my/ojs/index.php/MAR/article/view/1103>. Date accessed: 18 sep. 2020. doi: http://dx.doi.org/10.24191/mar.v19i1.1103.