Does corporate sustainability disclosure mitigate earnings management: empirical evidence from Jordan

Ahmad Yuosef Alodat (), Hamzeh Al Amosh (), Osamah Alorayni () and Saleh F. A. Khatib ()
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Ahmad Yuosef Alodat: Universiti Malaysia Terengganu
Hamzeh Al Amosh: Ministry of Education and Higher Education
Osamah Alorayni: Universiti Sains Malaysia
Saleh F. A. Khatib: Universiti Teknologi Malaysia

International Journal of Disclosure and Governance, 2024, vol. 21, issue 1, No 10, 165-174

Abstract: Abstract This paper aims to investigate the relationship between sustainability disclosure practices and earnings management in the Jordanian context. Based on an analysis of 66 non-financial firms listed on ASE, spanning the period of 2017–2020. The findings revealed that companies' compliance with the disclosure of sustainability improves their ethical behavior, which limits earnings management practices and increases the reliability of their financial statements. The findings have implications for regulators, corporate executives, practitioners, policymakers, top management, and business partners. More corporate sustainability practices present more trustworthy information and more sustainable performance of the economic. To the best of the authors’ knowledge, this is the first study to examine the relationship between the extent of sustainability disclosure and earnings management in Jordanian firms. Moreover, two models were used for earnings management, which adds value to the existing literature.

Keywords: Sustainability disclosure; Earnings management; Jordan firms (search for similar items in EconPapers)
Date: 2024
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Citations: View citations in EconPapers (1)

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DOI: 10.1057/s41310-023-00213-4

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