Agency cost and Earnings Management: Evidence from Amman Stock Exchange

Abstract

This study examines the impact of agency cost and earnings management by employing data from 30 Industrial Jordanian firms from 2009 to 2019. In this study, I will investigate if earnings management decreases agency expenses in Jordan, a country where businesses face agency issues. The confluence of agency cost problems and earning management was tested using a static model. The main findings of this study suggest that Earnings Management is closely associated with agency costs. There is an Agency Conflict occurrence in the ASE. On the other hand, the factors affecting corporate governance have no appreciable impact on the agency cost index.