skip to main content
Language:
Search Limited to: Search Limited to: Resource type Show Results with: Show Results with: Search type Index

Impact of Accounting Conservatism on Income Smoothing: Empirical Evidence from Algeria

Studia Universitatis Vasile Goldiş Arad. Seria ştiinţe economice, 2024-03, Vol.34 (1), p.37-55 [Peer Reviewed Journal]

2024. This work is published under https://creativecommons.org/licenses/by/4.0/ (the “License”). Notwithstanding the ProQuest Terms and Conditions, you may use this content in accordance with the terms of the License. ;ISSN: 2285-3065 ;ISSN: 1584-2339 ;EISSN: 2285-3065 ;DOI: 10.2478/sues-2024-0002

Full text available

Citations Cited by
  • Title:
    Impact of Accounting Conservatism on Income Smoothing: Empirical Evidence from Algeria
  • Author: Kimouche, Bilal ; Charchafa, Ilyes
  • Subjects: Accounting ; Accounting accruals ; Accounting conservatism ; Accounting standards ; Allowances ; Auditors ; Cash flow from operations ; Conservatism ; Earnings ; Earnings management ; Financial information ; Income smoothing ; M40 ; M41 ; Manipulation ; Proxies ; Reliability
  • Is Part Of: Studia Universitatis Vasile Goldiş Arad. Seria ştiinţe economice, 2024-03, Vol.34 (1), p.37-55
  • Description: This paper investigates the impact of accounting conservatism on income smoothing as a proxy for accounting manipulation. The study used 993 observations for 133 Algerian companies from 2012 to 2020, where income smoothing was measured by the variations in cash flows relative to earnings. However, conservatism was measured through non-operating accounting accruals, accruals-to-earnings ratio before extraordinary items, and allowances. The results showed that total accruals do not impact income smoothing versus positive impacts from non-operating accruals and allowances to income smoothing. Therefore, the study concluded that accounting conservatism facilitates income smoothing in Algerian companies by extending the discretionary room available for managers to manipulate earnings. These results require accounting regulators to consider the role of conservatism in manipulation when setting or amending accounting standards. They also imply that auditors should give more attention to conservative accounting practices to limit the opportunistic behavior of managers and increase the reliability of financial information.
  • Publisher: Arad: Sciendo
  • Language: English
  • Identifier: ISSN: 2285-3065
    ISSN: 1584-2339
    EISSN: 2285-3065
    DOI: 10.2478/sues-2024-0002
  • Source: Open Access: DOAJ Directory of Open Access Journals
    AUTh Library subscriptions: ProQuest Central
    德古意特开放获取电子期刊
Back to results list
INSPIRE LIBRARY - TON DUC THANG UNIVERSITY (84-028) 37 755 057 Feedback
19 Nguyen Huu Tho St. Dist.7, HCM thuvien@tdtu.edu.vn

Copyright © 2017 INSPIRE LIBRARY - TON DUC THANG UNIVERSITY

Searching Remote Databases, Please Wait