Journal of Finance and Economics

Journal of Finance and Economics

ISSN: 2291-4951 (Print)    ISSN: 2291-496X (Online)

Volume 1 (2013), No. 4, Pages 10-29

DOI: 10.12735/jfe.v1i4p10

Download Full Text:

The Impact of Earnings Management on Liquidity: Case of the Tunisian Stock Market

Youssef Riahi1  Imen Lamiri1  Mounira Ben Arab1 

1Institute of higher Management of Tunis, university of Tunis

URL: http://dx.doi.org/10.12735/jfe.v1i4p10Citation: 1 (Details)

To Cite this Article     Article Views: 781     Downloads: 481  Since January, 2015

Abstract

The aim of this paper is to study the relationship between earnings management and the liquidity of the Tunisian market. Our study was conducted on a sample of 19 companies listed on the Tunis Stock Exchange over the 1999 - 2011 periods.

Our results corroborate the existence of a positive and significant relationship between the earnings’ management achieved by the Tunisian companies and the market liquidity.

Our study shows that the practice of earnings’ management makes the market more liquid. This result can be accounted for by the lack of awareness among the liquidity- providers of this practice, especially as the level of earnings’ management and the level of disclosure carried out the by companies that constitute our sample are not very high. Besides, this result confirms the theory stating that the investors buy the earnings.

JEL Classifications: G10, M41

Keywords: earnings’ management, information asymmetry, disclosure information, market liquidity

To Cite this Article: Riahi, Y., Lamiri, I., & Arab, M. B. (2013). The impact of earnings management on liquidity: Case of the Tunisian stock market. Journal of Finance and Economics, 1(4), 10-29. http://dx.doi.org/10.12735/jfe.v1i4p10

Copyright © Youssef Riahi et al.

Creative Commons License
This article is published under license to Science and Education Centre of North America. This is an Open Access article distributed under the terms of the Creative Commons Attribution 4.0 International License.

To make sure that you can receive messages from us, please add the 'todayscience.org' domain to your e-mail 'safe list'. If you do not receive e-mail in your 'inbox', check your 'bulk mail' or 'junk mail' folders.

The Impact of Earnings Management on Liquidity: Case of the Tunisian Stock Market
reviwers