The Matching Characteristics between Revenues and Expenses for Listed Firms in the ASE

Abstract

The Matching Characteristics between Revenues and Expenses for Listed Firms in the ASE

Tareq Z. Mashoka

Abstract

The paper aims to examine the matching process for expenses and its items in different periods and over time with associated revenues. The sample includes listed firms in the ASE. The results show that expenses in periods (t-1), (t) and (t+1) are associated with current revenues which add distortion to the matching process. Results also show that this distortion in matching is caused by certain expense items from past and future periods. Moreover, the results show that matching between current expenses and associated revenues has become worse over time.

Keywords: matching; revenues; expenses.