Abnormal accounting accruals Management by market disciplinary approach: Evidence in Tunisian banks before and after the Arab Revolution

摘要

This paper tests the effect of governance factor related to theshareholder ownership and to the auditor’s characteristic on the abnormalaccounting accruals in Tunisian banks. The aim of this study is to estimate theabnormal accruals drawing on the classical Kothari et al (2005) [13] model todemonstrate their progress before and after Tunisian revolution. Indeed,through the difference-in-difference approach, “DID,” this paper attempts todeduct the disciplinary factors that contribute to follow up these accrualsusing a linear regression model. The results show that the accountingmanipulation and net income smoothing in Tunisian banks worsened after theTunisian revolution, contrary to what was expected. This aggravation is shownby the "DID" approach that was the result of the market disciplinedeterioration played by the majority of shareholders, the external auditors andthe supervisory board. The overrun shareholders ownership in Tunisian bankshave caused an interest collision between them and the managers. The latter inturn, made collisions with the external auditors through rewards for a longperiod.