This study examines the relationship between intellectual capital (IC) and earnings management (EM) among firms listed on the Palestine Exchange, an environment marked by persistent political and economic instability, over the period 2013-2022. Using panel data analysis on 43 firms (430 firm-year observations) and employing the Kothari performance-adjusted model to estimate discretionary accruals as a proxy for EM, the study finds a significant negative relationship between overall IC efficiency and EM. Additional analysis reveals that human capital efficiency primarily drives this relationship, highlighting the crucial role of skilled human resources in promoting transparency and reducing managerial opportunism. The findings underscore the importance of investing in human capital development, ethical culture, and stakeholder-oriented strategies to limit EM and improve reporting quality, particularly in fragile institutional contexts such as Palestine.

Title

International Journal of Intellectual Property Management

Publisher

Inderscience Publishers

Publisher Country

Switzerland

Indexing

Scopus

Impact Factor

None

Publication Type

Both (Printed and Online)

Volume

--

Year

2026

Pages

--