Earnings Management and Financial Performance: An Empirical Investigation of the Istanbul Stock Exchange

Tuan K., Borak M.

SOSYOEKONOMI, vol.28, no.44, pp.381-394, 2020 (ESCI) identifier identifier

  • Publication Type: Article / Article
  • Volume: 28 Issue: 44
  • Publication Date: 2020
  • Doi Number: 10.17233/sosyoekonomi.2020.02.17
  • Journal Name: SOSYOEKONOMI
  • Journal Indexes: Emerging Sources Citation Index (ESCI), TR DİZİN (ULAKBİM)
  • Page Numbers: pp.381-394
  • Çukurova University Affiliated: Yes

Abstract

  • Following large-scale accounting scandals in capital markets, earnings management practices of companies have become an issue that should be taken into consideration especially in developing economies seeking to attract foreign investors. This empirical study aims to determine the relationship between earnings management practices and company's financial performance. For this purpose, 1928 firm-year data obtained from non-financial corporations listed on Borsa Istanbul between 2010 and 2017 are analyzed. The findings of the study indicate that companies apply to earnings management practices. The findings also support a positive relationship between earnings management practices and the financial performance of companies.