The Moderating Role of Firm Size on the Relationship between Financial Distress and Earnings Management | ||
| The Academic Journal of Contemporary Commercial Research | ||
| Article 3, Volume 3, Issue 1, March 2023, Pages 42-60 PDF (399.81 K) | ||
| Document Type: Original Article | ||
| DOI: 10.21608/ajccr.2023.293122 | ||
| Authors | ||
| Monir Mohamed ElRabat* ; Hala Abdel-Naby Abdel-Fattah; Manal Abdel-Azim Mohamed | ||
| Accounting Department, Faculty of Commerce, Cairo University, Giza, Egypt | ||
| Abstract | ||
| This research aims to examine the moderating role of firm size on the relationship between Financial Distress (FD) and Earnings Management (EM). In this research, a sample of 101 Egyptian firms listed in the Egyptian stock Exchange is used for a period of six years from 2014 to 2019. The results revealed that there is a significant positive relationship between FD and EM. Moreover, it is found that there is a significant negative relationship between firm size and EM. Additionally, there is a significant positive relationship between firm size and FD. Finally, the results indicated that the firm size moderates the relationship betweenFD and EM, implying that firm size reduces the negative impact of Z-score on EM. Thus, government, public investors, shareholders, banks, insurance companies and creditors should consider firm size while assessing the relationship between FD and EM. | ||
| Keywords | ||
| Financial Distress; Earnings Management; Firm Size; Firm Characteristics | ||
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