The effect of income smoothing practices on the market value A study on a sample of Saudi shareholding companies for the industrial sector for the period (2014-2017)

Abstract

This study aimed to determine the effect of income smoothing practices on the market value, by finding the relationship between income smoothing and the market value. The study was conducted on a sample of 10 Saudi joint stock companies active in the basic materials industry sector listed on the "Tadawul" registered in "TASI" index during the period from2014 to 2017, and measuring income smoothing practices using (Eckel 1981) model and the same approach was followed through the coefficient of variation of the change in the market value, and the Khi-deux test was used to determine the relationship between the market value variable and the introductory variable Income, and the study found that there is no relationship between the introduction of Saudi joint stock companies active in the basic materials industry sector for their income and their market value for the period from 2014 to 2017.