Cloud ERP Systems: Driving Quality in Financial Reporting Through Discretionary Accrual Reduction

Ahmad A. Toumeh ()
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Ahmad A. Toumeh: Al-Zaytoonah University of Jordan

A chapter in New Perspectives and Paradigms in Applied Economics and Business, 2025, pp 157-167 from Springer

Abstract: Abstract This paper aims to examine the effect of the Cloud Enterprise Resource Planning (C-ERP) system on accrual-based earnings management, measured by the absolute value of discretionary accruals (ABSDA). The current research employs the matched-pair approach alongside robust standard errors within a random-effects model to draw conclusions. Using a sample of 56 service and manufacturing companies listed on the Amman Stock Exchange (ASE) for the period 2019–2022, the findings reveal a significant and negative association between C-ERP and accrual-based earnings management. The findings demonstrate that cutting-edge technologies such as the C-ERP system can be an effective mechanism in decreasing the use of ABSDA, which enhances financial reporting quality. This paper is among the first to analyze the influence of the C-ERP system on earnings management practices in the literature.

Keywords: Earnings management; Discretionary accruals; Cutting-edge technologies; Cloud enterprise resource planning; Jordan (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:spr:prbchp:978-3-031-77363-1_11

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DOI: 10.1007/978-3-031-77363-1_11

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