Using “Eckel” Model to Measure Income Smoothing Practices: The Case of French Companies
Authors: Feddaoui Amina
Income smoothing represents an attempt on the part of the company's management to reduce variations in earnings through the manipulation of the accounting principles. In this study, we aimed to measure income smoothing practices in a sample of 30 French joint stock companies during the period (2007-2009), we used Dummy variables method and “ECKEL” model to measure income smoothing practices and Binomial test accourding to SPSS program, to confirm or refute our hypothesis. This study concluded that there are no significant statistical indicators of income smoothing practices in the sample studied of French companies during the period (2007-2009), so the income series in the same sample studied of is characterized by stability and non-volatility without any intervention of management through accounting manipulation. However, this type of accounting manipulation should be taken into account and efforts should be made by control bodies to apply Eckel model and generalize its use at the global level.
Digital Object Identifier (DOI): doi.org/10.5281/zenodo.1474795Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 797
 Hossein Etemadi, Sahar Sepasi, A Relationship between Income Smoothing Practices and Firms Value in Iran, Iranian Economic Review, Vol.13, No.20, Fall & Winter 2007, p. 2. Web source: ftp://ftp.repec.org/opt/ReDIF/RePEc/eut/journl/20073-3.pdf.
 Jennifer Tucker, Paul Zarowin, “Does Income Smoothing Improve Earnings Informativeness”, The accounting review, Volume 81, N°:1, 2006, p. 251. Web source: https://warrington.ufl.edu/accounting/docs/TAR_income_smoothing.pdf
 Roslaina Haji Yusoff, "Empirical study on the relationship between income smoothing and shareholders wealth among Malaysian listed companies", published master Thesis, Management and business faculty, Universititechnologi Mara, Selangor Darul Ehsan, Malaysia, 2001, p. 6.
 Charles Mulford, Eugene Comiskey, "The financial numbers game, detecting creative accounting practices", John Wiley & Sons Inc: New Jersey, Canada, p. 3.
 Feddaoui Amina, “The role of the pillars of corporate governance in reducing creative accounting practices Study of a sample of French companies registered with the index SBF250” PhD thesis, Badjimokhtar university, annaba, Algeria,2014, pp. 134-137, 188-189, 299.