Earnings management thresholds: Temporal analysis and valuation consequences in the tunisian context

While applying a Burgstahler and Dichev (1997) methodology type to the annual data corresponding to the period ranging from 1997 to 2004, Ben Amar and Abaoub (Asian Academy of Management Journal of Accounting & Finance, 2010) clearly show that the Tunisiancompany management is aiming at avoiding losses and earnings decreases rather than avoiding negative earnings surprises. Applying the Brown and Caylor (2003) model to a same sample used in the paper of Ben Amar and Abaoub (2010), this research intend to provide an economic ground enabling us to explain the main reasons behind which managers tend to avoid losses and earnings decreases rather than avoid negative earnings surprises.