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Introduction




Prior research has discussed real earnings management practices according to several themes such as R&D investment (e.g. Gunny,2005), performance (e.g. Leggett et al.,2009; Kumar et al.,2020), leverage (e.g. Zamri, et al.,2013)‏, governance (e.g. Ge and Kim, 2014; Tabassum et al.,2015; Cheng et al.,2016), institutional ownership stability(e.g. Sakaki et al.,2017; AL-Duais et al.,2021; Siraji,2021), CFO and CEO reimbursement (e.g. Zhou et al.,2018), earnings quality (e.g. Li,2019),social responsibility reporting (e.g. Ghaleb et al.,2021), managerial ability (e.g. Oskouei et al.,2021), market value (e.g. Bansal, et al.,2021).However, the results of previous studies vary according to environment, cultural factors, regulations besides the differences concerning the scope and analysis. Moreover, to the best of knowledge the extant accounting research does not discuss the key differences among industries regarding the occurrence of real earnings management practices from emerging markets perspectives.
Accordingly, the research problem essence is to examine the key differences among industries of Egyptian Stock Exchange concerning the real earnings management practices. The research aims to clarify and describing the differences of real earnings practices among sectors of Egyptian Stock Exchange. The research contributes to the extant accounting literature by extending the notion of earnings management within different sectors of Egyptian Stock Exchange. Moreover, it provides empirical evidence from Egyptian context as an emerging market. Finally, the research provides crucial information for shareholders, stakeholders, financial analysts and related parties concerning the motivations of real earning management practices each sector.
The reminder of the research can be organized as follows. Section 2 presents the literature review and hypothesis development. Section 3 explains the research design and methodology. Section 4 demonstrates the results whereas conclusions, recommendations and further research are presented in section 5.