The consequence of earnings management through discretionary accruals on the value relevance in Saudi Arabia

This study explores the relationship between company earnings management and relative value relevance of book earnings. The differential effect on (EM) from 2014 to 2018 for all firms listed Saudi Stock Exchange (Tadawul) is investigated by short-term versus long-term discretionary accruals. For whose EM considered as an indication its accruals, it anticipated that earnings’ would be lower than do not consider EM. results show accruals influence compared short-term. study’s finding expected shed light applying quality firms’ financial reporting in protecting stakeholders’ interests providing them with credible information free manipulations.