The Impact of the Ownership Structure on Earnings Management "An Empirical Study on the Hotels Listed in ASE"

This study aimed at identifying the earnings management in hotels which listed in Amman Stock Exchange (ASE), and analyzed the impact of the ownership structure on earning management. To achieve this goal, the researcher has measured the earnings management by modified Jones model. The ownership structure had been measured by four variables which are institutional ownership, family ownership, citizen's ownership, and the concentration of ownership. The study sample consists of all hotels listed in ASE which are eleven hotels. The study had data in Amman Stock Exchange during the study period (2007 - 2012). The study results show that the degree of earnings management in hotels listed in Amman Stock Exchange was low. The percentage of the degree of earnings management was 33%. The results showed increased in the proportion of institutional ownership beside increased the dispersion of ownership which they reduces the degree of earnings management in hotels that listed on the ASE. The results of the study also showed that the family ownership and citizen's ownership didn't effect in the degree of earnings management in hotels listed in ASE.