Open AccessEarnings management and its applications in Saudi Arabia context: Conceptual framework and literature review
Author(s) -
Sarah Abu Alfadhael,
Bilel Jarraya
Publication year - 2021
Publication title -
accounting
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.175
H-Index - 5
eISSN - 2369-7407
pISSN - 2369-7393
DOI - 10.5267/j.ac.2021.3.009
Subject(s) - earnings management , accounting , context (archaeology) , earnings , business , conceptual framework , geography , social science , sociology , archaeology
Continuous improvement of accounting policies coincides with the increase and development of earnings management. Several studies focus on this topic, and it became subject to many investigations. This paper deals with current literature focused on several axes of earnings management like motives for practicing earnings management, earnings management types, developed models to discover earnings management, factors affecting earnings management, and the consequences of earnings management practices. Besides, this research focuses on earnings management in Saudi Arabia in particular. In the recent period, Saudi Arabia is going through changes in the Saudi economy and changes in accounting systems, such as adopting the IFRS standards, which provides opportunities for expanding research into earnings management in the Saudi Arabia context. Several studies conclude that Saudi companies' earnings management practices are done in several ways and affected by many factors.