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ACCRUAL AND REAL EARNINGS MANAGEMENT IN BOTH STATE-OWNED AND PRIVATELY-OWNED EGYPTIAN COMPANIESDownload This Article
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This study aims to explore the difference between the level of both types of earnings management; Accrual Earnings Management (AEM) and Real Activity Earnings Management (REM)) between state and privately owned Egyptian companies. Using a sample of non-financial state and privately owned companies over the period from 2010 to 2017, with 1030 firm–year observations. The results reveal that there are no significant differences in the level of both AEM and REM using the two proxies; sales manipulation and discretionary expenses; between state and privately owned firms. This result could be attributed to the Egyptian government’s attempt to eliminate the differences between state-owned and private owned companies, especially in recent years.
Keywords: Accrual Earnings Management, Real Earnings Management, State Ownership
Authors’ individual contribution: The author is responsible for all the contributions to the paper according to CRediT (Contributor Roles Taxonomy) standards.
Acknowledgements: I would like to express my deep appreciation to my first Ph.D. supervisor, Prof. Ahmed H. Behairy, for his support and guidance and to my co-supervisor Prof. Mohammed E. Abulezz, for his helpful comments and suggestions.
JEL Classification: M4, M41
Published online: 20.08.2019
How to cite this paper: Boghdady, A. B. A. (2019). Accrual and real earnings management in both state-owned and privately-owned Egyptian companies. Corporate Ownership & Control, 17(1), 8-13. http://doi.org/10.22495/cocv17i1art1