Impact of Earnings Management on Market Value in Light of Dividend Policy: an Econometric Study of a Sample of Saudi Stock Exchange-Listed Companies During the Period 2010–2021

Резюме:

This study aimed at examining the impact of earnings management on market value under a dividend policy for a sample of institutions listed on the Saudi Stock Exchange and registered in TASI during the period (2010–2021). A descriptive analytical approach and a quantitative econometric analysis using One-Step System GMM Dynamic Panel Data Model were employed. The study reported that all the institutions performed a short-term earnings management oscillating up and down by different proportions during the study period, and that there is an impact of earnings management on value market in both the absence and presence of the dividend policy. The study therefore points to the need for investors education about accounting manipulation in general and earnings management in particular as the latter has an impact on the market value of institutional shares and accordingly on their investment decisions.

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