Accounting and Financial Management

Our PhD students

Photo of Ghada Abdelwahed

Ghada Abdelwahed

  • Role Title: PhD student
  • Address: Richmond Building Portland Street Portsmouth PO1 3DE
  • Telephone: tbc
  • Email: Up836782@myport.ac.uk
  • Department: Accounting and Financial Management
  • Faculty: Portsmouth Business School

Biography

Nationality: Egyptian      Director of studies: Khaled Hussainey and Dechuan Li       Year of graduation: 2019

The Impact of Earnings Management on the Value Relevance of Earnings and Book Value: an Empirical Study of the Listed Companies in Egypt and the US

This research is meant to study the impact of earnings management on the value relevance of earnings and book value, and their influence on the firm’s stock price. This study will help Egyptian and US investors understand how manipulation in the firms’ earnings and book values will represent a misleading value of the firm- indicated by the firms’ stock prices. Therefore, it’s important for the external users to know how to detect high levels of earnings manipulations, as well as to know the possible reasons behind it, in order to avoid investing in such firms or to place the required regulatory measures to enhance the integrity of the financial reporting process in order to reflect the real value of firms. In doing so, data will be collected and analyzed from the Disclosure Books and Reuters of the 50 most active Egyptian firms listed on the EGX and the 50 most active US firms listed on the S&P 500 index, throughout the four years from 2012- 2015, and tested using a multiple regression model. The discretionary accruals, as an earnings management indicator, will be calculated using the Modified Jones model, to realize its impact on the value relevance on two accounting information indicators, earnings and book value of firms. In addition, as a contribution to this research, the impact of the audit quality on earnings management and on the value relevance of accounting information will be analyzed.