Financial Leverage and Dividends as Determinants of Earnings Management: Evidence from Amman Stock Exchange and Implications for AI and Sustainability, Samah Al-Khalili, Mohammed Idris, Sodfa Eltaher
Samah Mohmmad Noor Zeab Al-Khalili
Master of Accounting, Faculty of Business, Applied Science Private University
Amman
Jordan
ORCID: 0009-0004-6052-1630
Mohammed Idris
Associate Professor of Accounting, Accounting Department, Faculty of Business, Applied Science Private University
Amman
Jordan
ORCID: 0000-0003-4966-7941
Sodfa Eltaher
Department of Business Administration, Faculty of Commerce for Girls, Al-Azhar University
Cairo
Egypt
ORCID: 0009-0008-1032-0506
Paper Type: Research
Received: 24 November 2025 / Revised: 16 December 2025 / Accepted: 22 December 2025 / Published: 20 March 2026
DOI: 10.47556/J.WJSTSD.21.1-2-3.2026.9
Purpose: The aim of the study is to explore the effect of financial leverage on the relationship between cash dividends and earnings management in service companies listed on the Amman Stock Exchange (ASE).
Design/Methodology/Approach: The researchers used a quantitative methodology to achieve the study objectives. The study duration is five years, from 2020 to 2024.
Findings: The study demonstrates that different earnings management mechanisms behave differently, supporting the argument that firms selectively choose channels with the lowest detection risk.
Originality/Value: This paper contributes to the discussion by considering the sustainability of dividends, leverage, and earnings management through the lens of artificial intelligence (AI).
Research Limitations: The study considers only service firms listed on the ASE from 2020 to 2024.
Practical Implications: The research reveals that it is important for regulators and firms to adopt AI-based financial governance systems that may lead to improved data quality, ethical soundness, and sustainability-induced transparency.
Keywords: Earnings Management; Financial Leverage; Artificial Intelligence; Integration; Sustainability.
Citation: Al-Khalili, S. M. N. Z., Idris, M. Eltaher, S. (2026): Financial Leverage and Dividends as Determinants of Earnings Management: Evidence from Amman Stock Exchange and Implications for AI and Sustainability. World Journal of Science, Technology and Sustainable Development (WJSTSD), Vol. 21, Nos. 1/2/3, pp. 145-161. WASD: London, United Kingdom.
