Economics at your fingertips  

Abnormal accounting accruals Management by market disciplinary approach: Evidence in Tunisian banks before and after the Arab Revolution

Mohamed Sadok Gassouma

Journal of Finance and Investment Analysis, 2019, vol. 8, issue 2, 2

Abstract: This paper tests the effect of governance factor related to the shareholder ownership and to the auditor’s characteristic on the abnormal accounting accruals in Tunisian banks. The aim of this study is to estimate the abnormal accruals drawing on the classical Kothari et al (2005) [13] model to demonstrate their progress before and after Tunisian revolution. Indeed, through the difference-in-difference approach, “DID,†this paper attempts to deduct the disciplinary factors that contribute to follow up these accruals using a linear regression model. The results show that the accounting manipulation and net income smoothing in Tunisian banks worsened after the Tunisian revolution, contrary to what was expected. This aggravation is shown by the "DID" approach that was the result of the market discipline deterioration played by the majority of shareholders, the external auditors and the supervisory board. The overrun shareholders ownership in Tunisian banks have caused an interest collision between them and the managers. The latter in turn, made collisions with the external auditors through rewards for a long period. JEL classification numbers: M41, G01, G21, G3, H12, C58Keywords: abnormal accruals, accounting, corporate governance, agency conflict, difference-in-difference.

Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link) (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:

Access Statistics for this article

More articles in Journal of Finance and Investment Analysis from SCIENPRESS Ltd
Bibliographic data for series maintained by Eleftherios Spyromitros-Xioufis ().

Page updated 2019-02-02
Handle: RePEc:spt:fininv:v:8:y:2019:i:2:f:8_2_2