Title: Discretionary accruals and ownership structure: empirical study from Jordan

Authors: Adel Almasarwah

Addresses: Accounting Department, Business School, The Hashemite University, P.O. Box 330127, Zarqa 13133, Jordan

Abstract: The present research explores the relationship between ownership concentration and discretionary accruals, specific regard being paid to industrial organisations located within the country of Jordan. Ownership structure is recognised as being one of the key elements in the evaluation and overseeing of the overall value and financial reporting (Brown et al., 2014) and, in the same vein, according to Lee (2007), ownership structure is determined in an effort to enhance operations and financial indicators' effectiveness and efficiency across the accounting system. This work establishes that the Margin model - as presented by Peasnell et al. (2000) - can be considered as more valuable when it comes to describing earnings management within the Jordanian context - specifically when contrasted with more widely adopted accruals models.

Keywords: discretionary accrual; Jordanian industrial firms; Margin model; ownership structure; quadratic discriminant analysis; QDA; Jordan.

DOI: 10.1504/IJCG.2019.103225

International Journal of Corporate Governance, 2019 Vol.10 No.3/4, pp.209 - 247

Received: 10 Nov 2018
Accepted: 18 Jun 2019
Published online: 22 Oct 2019 *

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