| Popis: |
In the context of emerging markets, foreign ownership is considered as an effective mechanism that could complement current governance structure because foreign investors prefer to invest in good-governed firms. Using the population of all manufacturing firms listed on Amman Stock Exchange over the period 2017 – 2021, this notion is tested in constraining manipulations in accruals, sales, production costs, and discretionary expenses. However, the results reveal that foreign investors do not reduce the practice of earnings management which is inconsistent with reducing agency problems in Jordan. Accordingly, a caution must be exercised by Jordanian regulators in the process of promoting the scrutiny over listed firms. |
