The Effect of Real Earnings Management on Economic Value Added: Listed Companies of Dubai Financial Market

Abstract

Abstract: In this paper, we reviewed the impact of Real Earnings Management on the Economic Value Added. The real earnings management value was calculated for (52) companies listed on the Dubai Financial Market through (Sales Manipulation, Production Costs Manipulation, and Discretionary Expenses Manipulation), the period of study 5 years from 2014 to 2018, the results showed that companies practiced real earnings management activities in varying proportions. In addition, we calculated the economic value added without adjustments and with additional adjustments for all sample companies. To test the validity of the hypothesis, we used a regression analysis by applying the three empirical models. Through the results of the analysis, we accepted the alternative hypothesis it's mean we funded the negative effect of real earnings management on economic value added (negative significance) Keywords: Earnings Management, Real Earning Management, Economic Value Added