The Level of Conservatism in Accounting Policies and Its Effect on Earnings Management


  •  Suzan Abed    
  •  Jomana Al-Badainah    
  •  Jamal Abu Serdaneh    

Abstract

This study investigates the level of conservatism in accounting policies and examines its effect on earnings management for a sample of 259 Jordanian Manufacturing companies during the period 2006-2009. The results indicate that there are differences on the level of conservatism between companies. Furthermore, the results of this study reveal that conservatism and size are negatively related to earnings management, whereas performance found to be positively related to earnings management.



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