- The relationship between firm listing status and earnings management

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This paper examines the relationship between listing status and earnings management. Earnings management is defined as the combination of accosting strategies used to develop financial statements to provide an evaluation of a firm’s financial position (Beneish, 2001; Ghazali et al., 2015; Schipper, 1989). By choosing a sample of 352 firms in the UK for the period of 2012 to 2018 (1778 firm-year observations including 454 public firm-year observations and 1425 private firm-year observations), including 84 public firms and 268 private firms, this study used the modified Jones model (1991) as a proxy of earnings management to identify discretionary accruals, as the dependent variable and inserting seven control variables .the result obtained using (LSDV) regression . The findings of this study reveal that public firms engage less in earnings management practices, while private firms engage highly in earnings management practices, consistent with the findings of Al-Amri (2016), Ball and Shivakumar (2005), and Burgstahler et al. (2006). This study also indicates that large firms engage less in earnings management. These findings help policy makers to implement regulation to improve the quality of private firms’ reporting – for example, by studying the opportunity to adopt IFRS o private firms in the UK.