THE IMPACT OF COMPREHENSIVE INCOME DISCLOSURE ON EARNINGS MANAGEMENT: AN EMPIRICAL STUDY OF JORDANIAN COMPANIES LISTED ON AMMAN STOCK EXCHANGE
Research Purpose: This study empirically investigates the impact of OCI disclosure (measured as other comprehensive income divided by comprehensive income) on earnings management (measured by discretionary accruals based on modified Jones model). Methodology: This research used cash flow from operations (CFO), current ratio (CR), debt ratio (DR), and SIZE as control variables. Furthermore, the study covers a five-year period (2009-2013) sing a sample of (138) Jordanian firms. Using Pearson correlation and stepwise regression analyses for all sample firms and each sector independently. Research Finding: The results indicate that OCI does not have an impact on earnings management. Although size has a negative impact on earnings management, other control variables (CFO,CR,and DR) have no effect on earnings management. Funding Statement: The study was supported by grant research publication for faculty members in Applied Science Private University (ASU). This work was carried out under university research program. Author was supported by the grant from the higher degree by research department in ASU.
Financial Accounting Standard Board, International Accounting Standard Board, Other Comprehensive Income, Earnings Management, discretionary accruals.