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The Impact of Creative Accounting Practices on Financial Performance in Industrial Companies listed on Amman Stock Exchange |
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PP: 1651-1661 |
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doi:10.18576/isl/120513
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Author(s) |
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Khaleel Ibrahim Al-Daoud,
Riyad Neman Darwazah,
Abeer Fayez Al-Khoury,
Ahmad Hafeth Ismail,
Ibrahim Rajab Qteish,
Sulieman Ibraheem Shelash Al-Hawary,
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Abstract |
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| The study sought to determine the effects of creative accounting practices on financial performance of industrial companies listed on the Amman Stock Exchange (ASE). In order to fulfill the study’s goals, the primary data were collected from the financial statements of 42 industrial companies listed on ASE. Moreover, a multiple regression analysis was used to examine the study’s hypotheses. The study’s results revealed that creative accounting practices, which were income smoothing and earnings management, impacted financial performance that was measured by the return on assets and the return on equity. Therefore, the researchers recommend managers to pay attention to the levels of earnings management and income smoothing practices in evaluating the financial performance of industrial companies.
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