Work

Government ownership as a moderator between earnings management and firm performance: Insights from GCC countries

Year: 2024

Type: article

Abstract: The study’s objectives are to investigate the relationships between earnings management, government ownership, and corporate performance in the Gulf Cooperation Council (GCC) region during the period 2017–2021, utilizing a dataset comprising 188 companies. It further explores the moderating role of government ownership in the association between earnings management and company performance. The study used the panel regression data analysis to investigate the relationship between the variables under the study. Employing linear regression and moderated linear regression, the research discerns notable patterns. The result shows a positive effect emerges between government ownership and corporate performance. Conversely, the result shows a negative association is observed between earnings management and corporate performance. Finally, the moderating role of government ownership in GCC countries is a good governance mechanism to mitigate the agency problem.

Source: Journal of Infrastructure Policy and Development

DOI: 10.24294/jipd.v8i10.6089

Authors: B. M. Aljuhani, A. A. Alsmady, S. Sundarasen, I. Ibrahim

Institutions: University of Tabuk, Prince Sultan University

Language: English

Topic: Auditing, Earnings Management, Governance

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Peace, justice, and strong institutions

Open Access status: diamond

Funder: Prince Sultan University