The Level of Conservatism in Accounting Policies and Its Effect on Earnings Management

Abstract

This study investigates the level of conservatism in accounting policies and examines its effect on earnings management for a sample of 259 Jordanian Manufacturing companies during the period 2006-2009. The results indicate that there are differences on the level of conservatism between companies. Furthermore, the results of this study reveal that conservatism and size are negatively related to earnings management, whereas performance found to be positively related to earnings management. [ABSTRACT FROM AUTHOR] Copyright of International Journal of Economics & Finance is the property of Canadian Center of Science & Education and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)