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Accounting Earnings Quality Measures for Predicting Financial Failure

The College of Financial and Administrative Sciences
September 1, 2025 by
Accounting Earnings Quality Measures for Predicting Financial Failure
Yarmouk Private University
This study aims to evaluate the effectiveness of three measures
of earnings quality-namely, earnings persistence, earnings
management, and accounting conservatism-in predicting the
likelihood of financial failure among Syrian companies during the
period from 2018 to 2022. This s done by testing two statistical
hypotheses that assume no significant relationship between
these measures and the adjusted Z-score index for banks,
which serves as a measure of financial failure. Methodologically,
the study relies on the use of the Z-score model to measure the
probability of financial failure and employs statistically
recognized methods to measure each earnings quality metric.
Earnings persistence is measured using the standard deviation
of net income, earnings management is assessed through the
Modified jones Model, and accounting conservatism is
measured by the relationship between losses and depreciation.
Supervisor

Dr. Raghid Qasou’a

Committee


Students

Muhammad Imad Ahmad Al-Rajabi - Mu'ayyad Munther Shamout - Musa Mustafa Al-Fahl

Accounting Earnings Quality Measures for Predicting Financial Failure
Yarmouk Private University September 1, 2025
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