The Moderating Effect Of Information Asymmetry On The Relationship Between Accounting Conservatism And Earnings Quality - An Empirical Study On Companies Listed In Damascus Stock Exchange-
Abstract
Earning quality is considered one of the main basis that management seeks to achieve and maintain, specially in the cases of uncertainty and conflict that might companies suffer.
To achieve that goal managements try to follow conservative Accounting polices that take into account all risks that might face their works. These polices is enhanced in case of information asymmetry that each part has and results from the separation between management and ownership.
Based on that, this study aimed to determine the impact of accounting conservatism on earning quality, as well as the moderator impact of information asymmetry on the relationship between accounting conservatism and the earning quality.
The data is collected using annual financial reports for companies listed in Damascus Stock Exchange. These reports are available on Damascus Stock Exchange website. Using a dataset of 18 listed companies covering the period 2013 to 2022 comprising a total of 180 observations, Panel Data analysis is employed, with the help of the application Eviews 10 and Microsoft Excel 2010. The study used time-sectional data Panel Data Balanced.
The earnings quality variable was measured based on persistence of earnings, proximity to cash, and earnings management, while accounting conservatism was measured by dividing the market value of equity to the book value of equity, and information asymmetry was measured based on trading volume. The results showed that there is no effect of accounting conservatism on the earnings quality, as well as the absence of any moderating effect of the information asymmetry variable.
Downloads
Published
How to Cite
Issue
Section
License
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
-
The authors retain the copyright and grant the right to publish in the magazine for the first time with the transfer of the commercial right to Tishreen University Journal of Research and Scientific Studies - Economic and Legal Sciences
Under a CC BY- NC-SA 04 license that allows others to share the work with of the work's authorship and initial publication in this journal. Authors can use a copy of their articles in their scientific activity, and on their scientific websites, provided that the place of publication is indicted in Tishreen University Journal of Research and Scientific Studies - Economic and Legal Sciences . The Readers have the right to send, print and subscribe to the initial version of the article, and the title of Tishreen University Journal of Research and Scientific Studies - Economic and Legal Sciences Publisher
-
journal uses a CC BY-NC-SA license which mean
You are free to:
- Share — copy and redistribute the material in any medium or format
- Adapt — remix, transform, and build upon the material
- The licensor cannot revoke these freedoms as long as you follow the license terms.
-
Attribution — You must give appropriate credit, provide a link to the license, and indicate if changes were made. You may do so in any reasonable manner, but not in any way that suggests the licensor endorses you or your use.
-
NonCommercial — You may not use the material for commercial purposes.
-
ShareAlike — If you remix, transform, or build upon the material, you must distribute your contributions under the same license as the original.
- No additional restrictions — You may not apply legal terms or technological measures that legally restrict others from doing anything the license permits.
