Abstract
Accounting accruals are widely used in measuring the accounting earnings management although the literature showed a negative relationship between the accounting earnings management and the real earnings management. This study explored the effects of the accounting accruals on real earnings management in some of the Algerian companies. The study included a sample of 100 firm-year observations that concern 20 companies during the period 2015 – 2019. The hypothesis testing was based on a leaner regression model that relates real earnings management proxy with accounting accruals. The results indicated a statistically significant negative effect of accounting accruals on real earnings management, which is consistent with the hypothesis and confirmed the many previous studies on the negative relationship between accounting earnings management and real earnings management. The results also provide evidence on the behaviour of managers where many of whom resort to real earnings management in case of non-conformity with the accounting earnings management. The study provides confirmation to users in the real capture of the financial statements quality as well as auditors when certificating financial statements. Users of financial statements in the Algerian companies must carefully use accounting information and employ more than one accounting items when making decisions. Meanwhile, auditors are recommended to focus more on accounting accruals when examining and certificating financial statements.
Keywords: real earnings management, accounting earnings management, accounting accruals, earnings quality, Algerian companies
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