The effect of earnings management on profitability: Evidence from Palestine

Rafat Mohammad Abu Alrob ()

Asian Economic and Financial Review, 2025, vol. 15, issue 1, 131-145

Abstract: This research examined the influence of earnings management on the profitability of non-financially-listed companies on the Palestine Stock Exchange between 2017 and 2021. The study employed regression analysis to measure the impact of earnings management on profitability using a sample of nonfinancial listed companies, which included (31) listed companies. SPSS, a statistical analysis program, assisted the researcher in concluding a negative relationship between the dependent variable earnings per share and independent variables earnings management measured by discretionary accruals using the Jones model 1995 and free cash flow at the 1% level. However, there is a statistically significant positive correlation between dividends per share and the profitability of corporations listed on PEX at the 1% level. Lastly, the outcome shows no statistically significant association between the profitability of corporations listed on the PEX and the control variables. The findings, particularly the negative relationship between earnings per share and earnings management and the positive correlation between dividends per share and profitability, contribute new perspectives to the existing body of knowledge on financial performance in emerging markets.

Keywords: Dividends per share; Earnings management; Earnings per share; Free cash flow; PEX; Profitability. (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://archive.aessweb.com/index.php/5002/article/view/5287/8156 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:asi:aeafrj:v:15:y:2025:i:1:p:131-145:id:5287

Access Statistics for this article

More articles in Asian Economic and Financial Review from Asian Economic and Social Society
Bibliographic data for series maintained by Robert Allen ().