The Effect of Earnings Management on Financial performance: An Empirical Analysis of EGX100 Companies in Egypt

Rafik Boshra Wadie, Mary

doi:10.21608/jces.2025.435124

The Effect of Earnings Management on Financial performance: An Empirical Analysis of EGX100 Companies in Egypt

نوع المستند : المقالة الأصلية

المؤلف

Mary Rafik Boshra Wadie

Lecturer at financial institution department Modern University for Information and Technology

10.21608/jces.2025.435124

المستخلص

This paper reviews earnings management effects on EGX100 listed companies in Egypt to analyze ROA and ROE performance measures. The research strives to analyze how earnings management practices affect financial report data while focusing on emerging markets. The research design uses both regression analysis and the Feasible Generalized Least Squares (FGLS) model for quantitative analysis of financial data collected from EGX100 companies. This study evaluates hypotheses H1a, H1b, H1 along with H2 where H2 is subject to testing for rejection. Models 1 and 2 validate the positive association between earnings management and ROA and ROE with 99% confidence levels thus supporting hypotheses H1a, H1b, H1 and disproving H2. The analysis shows well-fitting results through Model 1 and Model 2 statistics featuring F-statistics measuring 0.412, 512 and achieving R-squared values of 0.774, 0.873. Researchers discovered through their findings that earnings manipulation produces substantial improvements in reported financial numbers even though it hides actual economic realities. By means of its empirical data collecting from EGX100 companies, this study contributes to the body of knowledge on earnings management in emerging markets.

الكلمات الرئيسية