Accrual-based and cash-based earnings management in Algeria: substitution or complementary

Abstract Managers are often employed many alternatives for earnings management following their objectives or the financial reporting objectives; commonly used accrual-based and cash-based management. The literature reveals that managers adopt two strategies in different ways, suggesting a mixed relationship between them. Hence, this study investigates of Algeria, whether it is substitute complementary. included 30 Algerian companies during 2011-2019, so total 270 firm-year observations were employed. Accrual-based was measured through modified-Jones model, while abnormal cash flows model. According to results, engage more employ as substitutes, which explains strong negative effect on We argue first management, then they shift towards due auditors’ scrutiny. Furthermore, we found positive medium return equity reflects managers’ desire adjust operating consistent with reported earnings. Finally, results indicated company ownership, listing, nature statements do not affect