Yousef Shahwan, Esra
This research aimed to discover the moderating impact of earnings management between social and environmental costs disclosure on financial performance. To realize this purpose, this research employed a quantitative method by using primary data collected from the Amman Stock Exchange. This study used the questionnaire to collect the data from a sample of 127 companies. The Smart Partial Least Squares (PLS) is used to test the data. The results of the study show that the social and environmental costs disclosure positively and significantly impacted the financial performance of the firms. This was consistent with agency, legitimacy, and stakeholders' theories. This means that more disclosure about the cost of social and environmental information could create opportunities for firms. Also, earnings management was found to have a significant and positive effect on the relationship between social cost disclosure and the financial performance of the firms. And earnings management was found to have a significant and positive effect on the relationship between environmental cost disclosure and financial performance of the firms.