Income smoothing and firm value in a regulated market: the moderating effect of market risk

Purpose This study aims to examine the impact of income smoothing on value firms in a regulated security market, moderated by market risk. is based prevalence accounting scandals resulting collapse which has been attributed opportunistic behaviors managers. Design/methodology/approach The ex post facto research design was employed, and as such, data were gathered from secondary sources. quantitative approach also used study. Furthermore, system generalized method moments (Blundell–Bond) panel estimation technique for analyzing data. Income measured using accrual methods, while firm share price. Findings found that negative significant value. revealed risk variable defines relationship between Originality/value Testing moderating effect unique this study, particularly emerging economy.