Management of abnormal accounting accruals through the regulatory approach of credit risk: Evidence in the Mena countries' banks before and after the Arab spring revolution

This article examines the effect of credit risk and its regulatory measures on accounting manipulation in 202 banks in the 10 MENA countries. Such a deviation from the regulatory requirements may lead managers to smooth the accounting net income, by applying the "fair full value" method as an accounting method. The purpose of this study is to estimate abnormal accruals using the classical Kothari et al (2005) [11] model and to see their progress before the Arab spring revolution (2000-2010) and after (2011-2014) using the “Difference-in-difference” approach.