Jordan Journal of Business Administration | 2026
Authors: Al-Manaseer H.A.; Al-Thuneibat A.; Ahmad A.
DOI: 10.35516/jjba.v22i1.1447
Journal: Jordan Journal of Business Administration
Year: 2026
Publisher: University of Jordan,Deanship of Scientific Research
Document Type: Article
Open Access: All Open Access; Gold Open Access
Cited by: 0
This study aims at investigating the impact of related-party transactions on earnings' management of the Jordanian non-financial listed companies and the impact of the Audit-firm Type as a moderating variable on this relationship. Content analysis of the financial reports of the non-financial companies was used to achieve the objectives of the study. The data used in the analysis was collected from a sample of 26 service firms and 24 industrial firms that were continuously listed in the Amman Stock Exchange during the period from 2014 to 2018, which resulted in 250 observations. Descriptive statistics and multiple-regression analysis were used to analyze the data and test the hypotheses. The study results revealed that there is a significant positive impact for related-party transactions on earnings' management. The results also revealed that there is an insignificant impact for the audit-firm type as a moderating variable on the relationship between related-party transactions and earnings' management. Based on the results of the study, the researchers recommend regulatory bodies as well as decision-makers to improve the monitoring mechanisms over companies and audit firms to reduce earnings' management. Also, Jordanian companies are recommended to disclose adequate and appropriate information about their related-party transactions, which may result in an increase in investors' trust in financial reporting. © 2026 DSR Publishers/The University of Jordan. All Rights Reserved. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY-NC) license (https://creativecommons.org/licenses/by-nc/4.0/)
Audit-firm type; Discretionary accruals; Earnings management; Related-party transactions