Pre-Listing Year Earnings Management and Listing Requirements: Evidence from Kuwait

Authors

  • Eiman A. Al- gharaballi The Public Authority for Applied Education and Training

DOI:

https://doi.org/10.34120/ajas.v23i1.935

Keywords:

Discretionary Accruals, Earnings Management, Kuwait Stock Exchange (KSE), KSE Listing Requirements

Abstract

This study investigates whether new listing Kuwaiti Shareholding Closed Companies (KSCCs) engage in opportunistic earnings management in the year before listing. Six discretionary accruals models are used to estimate the earnings management for 68 listing firms. Results based on parametric and non-parametric tests found some evidence to support the idea that earnings management had been exercised by KSCCs issuers in the pre-listing financial year. This conclusion was based on the existence of the significant positive discretionary accruals of the means and medians generated by models based on current accruals.

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Author Biography

Eiman A. Al- gharaballi, The Public Authority for Applied Education and Training

is a faculty member at the College of Business Studies in Kuwait. The Public Authority for Applied Education and Training, Kuwait.  She holds a Masters degree in accounting from Murray State University, USA, and a doctoral degree from University of Southern Queensland, Australia 2013.  She is a certified public accountant in Kuwait and accredited professional accountant. Her research interests include IPOs, earnings management, performance measures, listing requirements in capital markets and Neural Networks.

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Published

2016

How to Cite

Al- gharaballi, E. A. (2016). Pre-Listing Year Earnings Management and Listing Requirements: Evidence from Kuwait. Arab Journal of Administrative Sciences, 23(1), 67–88. https://doi.org/10.34120/ajas.v23i1.935

Issue

Vol. 23 No. 1 (2016)

Section

Accounting