Abstract

This study aims at identifying the impact of reinsurance operations on earnings management in the 16 Jordanian insurance companies listed on the Amman Stock Exchange for the period 2014-2018. The data and information were collected from the financial statements and reports of these companies. O1s Regression was used to test the hypothesis of the study. The findings of the study show that there is a positive impact of reinsurance operations on the earnings management in the Jordanian insurance companies, i.e. there are high earnings management practices in companies that have flowed for the insurance operation. The study recommends that other insurance tools should be used, whether legal, mutual or facultative reinsurance.