This study addresses the questions of whether Egyptian listed companies engage in earnings management, and if so, what is the influence of issuing equity; leverage; and firm performance on earnings management practice. The study also investigates whether firm size, audit quality and foreign listing could play important roles in such a practice. To examine earnings management practice in the Egyptian context, a sample of 183 listed companies divided into four sectors is used and two methods are employed (T- test and correlation tests). In addition, regression analysis is performed to investigate factors influencing earnings management practice. The empirical evidence suggests that Egyptian listed companies exercise earnings management by increasing reported income. Although, there are some differences among the four sectors issuing equity is the most influencing factors earnings management in these sectors.

Keywords:
Earning Management Practice; Earning Management incentives; Discretionary Accruals; Total Accruals; Issuing Equity; Leverage, and the Egyptian Exchange -The EGX.