Moderating Effect of the 2001-65 Law Relating to Credit Tunisian Institutions on Discretionary Practices

Amina Zgarni and Hassouna Fedhila

Asian Social Science, 2021, vol. 17, issue 2, 54

Abstract: The multitude of financial scandals throughout the last two decades is mainly due to fraud and significant irregularities recorded in the financial statements published following accounting manipulations. The aim of this study is to test the moderating effect of Law 2001-65 relating to credit institutions on discretionary practices within Tunisian banks. Following a comparative study of discretionary practices before the introduction of this law and after its introduction, on a sample of Tunisian commercial banks we have shown the crucial role played by this law in the limitation of discretionary behavior in order to align regulatory capital in relation to the period preceding the promulgation of this law (1990-2000). However, we have shown an increase in these discretionary behaviors for earnings management purposes during the period following the entry into force of this law (2001-2019).

Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:ibn:assjnl:v:17:y:2021:i:2:p:54

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