Earnings Management Practices During the Covid-19 Pandemic: A Comparative Study of Jordanian Family and Non-Family Controlled Firms

Rasmi Meqbel, Hanady Qamoom

2025

Abstract

This study aims to examine the association between family ownership and earnings management before and during the Covid-19 pandemic. Drawing upon the socioemotional wealth and agency theories, the research suggests that family-controlled firms might resort to earnings management as a strategic measure during the Covid-19 crisis to safeguard their endowment and legacy. To test the hypotheses, a panel data analysis is conducted using STATA software on a comprehensive sample of companies listed on the Amman Stock Exchange spanning from 2015 to 2022. Earnings management is measured using the Performance-matched Accrual Earnings Management model as proposed by Kothari et al. (2005). The findings show a significant insight into the behavior of family-controlled firms. Specifically, in the years leading up to the Covid-19 outbreak, these firms displayed a reduced inclination to engage in earnings manipulation. Conversely, within the Covid-19 pandemic, the outcomes indicate an increased likelihood of family firms adopting earnings management strategies. Practical implications include guiding family business decisions in challenging times, while theoretical insights contribute to our understanding of how family ownership influences financial strategies during crises. Societally, the study highlights the significance of transparent financial reporting for stakeholder trust and informs policy considerations to support family firms' resilience during economic disruptions.

Paper Citation

in Harvard Style

Meqbel R. and Qamoom H. (2025). Earnings Management Practices During the Covid-19 Pandemic: A Comparative Study of Jordanian Family and Non-Family Controlled Firms. In Proceedings of the 7th International Conference on Finance, Economics, Management and IT Business - Volume 1: FEMIB; ISBN 978-989-758-748-1, SciTePress, pages 251-258. DOI: 10.5220/0013465500003956

in Bibtex Style

@conference{femib25,
author={Rasmi Meqbel and Hanady Qamoom},
title={Earnings Management Practices During the Covid-19 Pandemic: A Comparative Study of Jordanian Family and Non-Family Controlled Firms},
booktitle={Proceedings of the 7th International Conference on Finance, Economics, Management and IT Business - Volume 1: FEMIB},
year={2025},
pages={251-258},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0013465500003956},
isbn={978-989-758-748-1},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 7th International Conference on Finance, Economics, Management and IT Business - Volume 1: FEMIB
TI - Earnings Management Practices During the Covid-19 Pandemic: A Comparative Study of Jordanian Family and Non-Family Controlled Firms
SN - 978-989-758-748-1
AU - Meqbel R.
AU - Qamoom H.
PY - 2025
SP - 251
EP - 258
DO - 10.5220/0013465500003956
PB - SciTePress