Affiliation:
1. Faculty of Accounting and Accounting Information Systems Departments Al-balqa Applied University Al-salt, Jordan
2. Faculty of Economics and Administrative Sciences Al Al-bayt University Al-mafraq, Jordan
Abstract
The present study aims to explore if the earning management practices differ for companies adopted Enterprise Resources Planning (ERP) systems within three categories (Bank and Insurance, Services, and Manufacturing) companies of listed (ERP)’s companies in Amman Stock Exchange (ASE). Therefore, their financial statements from 2012 to 2019 have been analysed depending on modified Jones model (1995). The study revealed that there is a positive relationship between (ERP)’s manufacturing sector companies with earning management practices, while there is no statistically significant correlation between the (ERP)’s services sector companies, (ERP)’s bank and insurance sector companies with earning management. Also, it doesn’t matter of adopting ERP systems to be engaged or not with earning management practices. Therefore, the study recommends users of manufacturing companies’ financial statement to focus on the increase inside financial statements of manufacturing sector
Publisher
World Scientific and Engineering Academy and Society (WSEAS)
Subject
Economics and Econometrics,Finance,Business and International Management
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