Khalid Yousif Ibrahim Salih, Saadaby Mohammed Ali Dafaalla Abdalla, Waheeb Hassan Yassin Gadour, Hazar Tawfiq Suleiman AlMohammadi, Andaleeb Qassim Rashed Almomany, Amani Ibrahim Mohamed Sied Ahmed
The study problem examined the factors that influence the tendency of the managements of Sudanese banks listed in the Khartoum Stock Exchange to practice the income smoothing policy. The study aimed to explore whether these banks practice the income-smoothing policy and thus to investigate the factors affecting their tendency to practice the income-smoothing policy. The Eckel model was used to classify banks as income-smoothing and non-income-smoothing. The appropriate statistical methods were applied to identify the effect of the following factors (size of the bank, financing structure, tax payments, the form of ownership, the management incentive and bonus plan, and level of profitability) on practicing the policy of income smoothing at the level of Sudanese banks listed in the Khartoum Stock Exchange. The study reached several findings including that the income smoothing policy is practiced at the level of Sudanese banks listed in Khartoum Stock Exchange. In addition, the tax payments represent the most crucial factor affecting the decision of Sudanese banks management to follow the income smoothing policy, followed by the factor of managements incentive and bonus plan, then the factor of the form of ownership. The study recommends reducing the income smoothing process in Sudanese banks by training auditors on the income smoothing policies that can be followed by Sudanese bank managements to influence the financial statements and the results of the business, and thus influence the beneficiaries' decisions as users of these financial statements.