New Evidence on the Determinants of Internal Control Weaknesses
The present study evaluates whether there is a significant relationship between investment, earnings management, ownership structure, and internal control weaknesses. For the study purpose, panel data, including the financial variables of sample companies listed on the Tehran Stock Exchange, were ev...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Ferdowsi University of Mashhad
2019-05-01
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| Series: | Iranian Journal of Accounting, Auditing & Finance |
| Subjects: | |
| Online Access: | https://ijaaf.um.ac.ir/article_39056_f62f214a0c56acc144729c0abec9d452.pdf |
| _version_ | 1817969472136282112 |
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| author | Vahab Rostami Zeynab Bazarghani Abbas Rostami |
| author_facet | Vahab Rostami Zeynab Bazarghani Abbas Rostami |
| author_sort | Vahab Rostami |
| collection | DOAJ |
| description | The present study evaluates whether there is a significant relationship between investment, earnings management, ownership structure, and internal control weaknesses. For the study purpose, panel data, including the financial variables of sample companies listed on the Tehran Stock Exchange, were evaluated during 2012-2018. To test the hypothesis, we analyzed the effect of seven descriptive variables on the dependent variable of internal control weakness; three models of Logit Pooled, LPM Pooled, and Probit Pooled are used for hypothesis testing. The results showed a negative and significant relationship between board compensation, real earnings management, accrual earnings management, capital structure, family ownership, and internal control weakness. Moreover, a positive and meaningful relationship was discovered between institutional ownership and internal control weaknesses. The current study's outcomes significantly show the relationship between internal control weaknesses, investment, earnings management, and firm ownership in a developing country. |
| first_indexed | 2024-04-13T20:22:35Z |
| format | Article |
| id | doaj.art-141f9cec5d0148919585a474547543fb |
| institution | Directory Open Access Journal |
| issn | 2717-4131 2588-6142 |
| language | English |
| last_indexed | 2024-04-13T20:22:35Z |
| publishDate | 2019-05-01 |
| publisher | Ferdowsi University of Mashhad |
| record_format | Article |
| series | Iranian Journal of Accounting, Auditing & Finance |
| spelling | doaj.art-141f9cec5d0148919585a474547543fb2022-12-22T02:31:30ZengFerdowsi University of MashhadIranian Journal of Accounting, Auditing & Finance2717-41312588-61422019-05-0132658110.22067/ijaaf.v3i2.8883639056New Evidence on the Determinants of Internal Control WeaknessesVahab Rostami0Zeynab Bazarghani1Abbas Rostami2Department of Accounting, Payame Noor University, Tehran, IranDepartment of Accounting, Payame Noor University, Tehran, IranDepartment of Accounting, Zanjan Branch, Islamic Azad University, Zanjan, IranThe present study evaluates whether there is a significant relationship between investment, earnings management, ownership structure, and internal control weaknesses. For the study purpose, panel data, including the financial variables of sample companies listed on the Tehran Stock Exchange, were evaluated during 2012-2018. To test the hypothesis, we analyzed the effect of seven descriptive variables on the dependent variable of internal control weakness; three models of Logit Pooled, LPM Pooled, and Probit Pooled are used for hypothesis testing. The results showed a negative and significant relationship between board compensation, real earnings management, accrual earnings management, capital structure, family ownership, and internal control weakness. Moreover, a positive and meaningful relationship was discovered between institutional ownership and internal control weaknesses. The current study's outcomes significantly show the relationship between internal control weaknesses, investment, earnings management, and firm ownership in a developing country.https://ijaaf.um.ac.ir/article_39056_f62f214a0c56acc144729c0abec9d452.pdfinternal control weaknessearnings managementownership structurefinancial reporting quality |
| spellingShingle | Vahab Rostami Zeynab Bazarghani Abbas Rostami New Evidence on the Determinants of Internal Control Weaknesses Iranian Journal of Accounting, Auditing & Finance internal control weakness earnings management ownership structure financial reporting quality |
| title | New Evidence on the Determinants of Internal Control Weaknesses |
| title_full | New Evidence on the Determinants of Internal Control Weaknesses |
| title_fullStr | New Evidence on the Determinants of Internal Control Weaknesses |
| title_full_unstemmed | New Evidence on the Determinants of Internal Control Weaknesses |
| title_short | New Evidence on the Determinants of Internal Control Weaknesses |
| title_sort | new evidence on the determinants of internal control weaknesses |
| topic | internal control weakness earnings management ownership structure financial reporting quality |
| url | https://ijaaf.um.ac.ir/article_39056_f62f214a0c56acc144729c0abec9d452.pdf |
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