Title: The effect of earnings management on financial performance in industrial companies listed in Amman Stock Exchange

Authors: Sanaa N. Maswadeh

Addresses: Jadara University, Irbid, Jordan

Abstract: The present study was aimed at finding out the effect of earnings management on financial performance measured by return on assets and economic value added, in the light of the existence of the control variables (company size and debt ratio) in industrial companies listed in Amman Stock Exchange. In order to achieve the objectives of this study, the quantitative approach was adopted using the financial statements of industrial companies listed in Amman Stock Exchange during the period from 2010 to 2017. The multiple linear regression model was utilised to test the hypotheses of the study. The findings revealed that earnings management has a statistically significant negative effect on financial performance measured by return on assets (ROA) and economic value added (EVA).

Keywords: earnings management; financial performance; return on assets; economic value added; size; debit ratio; Jones model; discretionary accruals; equity cost; Amman Stoke Exchange.

DOI: 10.1504/IJBIR.2026.153090

International Journal of Business Innovation and Research, 2026 Vol.39 No.4, pp.458 - 473

Received: 16 Jul 2020
Accepted: 27 Mar 2021
Published online: 22 Apr 2026 *

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