COVID-19 outbreak and earnings management practice: case of Tunisia

Purpose This article attempts to investigate the impact of COVID-19 outbreak on earnings management (EM) for listed Tunisian companies. Design/methodology/approach The study focuses both accrual-based and real EM (REM) practices. With panel data, authors employ multiple regression approach generalized least squares (GLS) estimate method. sample is made up 41 companies observed from first half 2016 second 2020. Findings finds that, during pandemic period, firms use decreasing income discretionary accruals. Also, with regard REM, variable displays a negative response coefficient but lesser magnitude. Research limitations/implications study's findings can help authorities, market investors better understand practices shock various internal external factors influencing quality financial reporting. These may contribute, also, significant implications scholars interested in other emerging markets. As limitations, point out mainly small size used this that single model, namely modified Jones model (1995), measure accounting EM. binary as proxy COVID- 19 pandemic. Originality/value To best authors’ knowledge, it Tunisia, if not Africa, examine Second, builds previous work by examining REM.