Factors limiting prudent profit management practices for accounting estimates applied to Egyptian joint stock companies.

This study aimed to study the factors that limit the practices of the profit management of accounting estimates by applying to the Egyptian shareholding companies on a sample of 22 companies during the period (2004 - 2013) belonging to five different business sectors. Determining the importance and reasons for the increased use of accounting estimates, identifying indicators for the application of prudent and arbitrary management practices, and identifying the implications of conservative and arbitrary accounting estimates for a review. Six key factors were examined Arbitrary profit management practices for accounting estimates as independent variables are the audit committees, the size of the audit office, the auditor's report, the quality of the investor, the social index, and the characteristics of the company (profitability, liquidity, And the dependent variable which is the change in the accounting estimates for provisions and depreciation. The results of the applied study supported the theoretical framework in accepting the first assumption that companies with audit committees tend to use conservative accounting estimates in comparison with the arbitrary accounting estimates, and the second assumption that the relationship between the size of the audit office and the change in conservative accounting estimates And the arbitrariness of the change in provisions but its acceptability for conservative and arbitrary accounting estimates for depreciation. The third and fourth trimester was not accepted as the study did not find significant differences between companies that receive unqualified audit reports or that are recorded on foreign stock exchanges and changes in accounting estimates that are arbitrary and conservative. The fifth assumption, which is based on the fact that companies entering the CSI tend to use conservative accounting estimates, was accepted in comparison to the accounting estimates for provisions and depreciation. The sixth hypothesis, which includes a relationship between the characteristics of the company (profitability, liquidity, financial leverage and volume), and the change in conservative accounting estimates were also accepted in comparison to the accounting estimates. The study ended with many recommendations and proposals for future research.