The Effect of Financial Crisis on the Quality of Financial Reporting
Managers of companies that are facing financial crisis, have high incentives to use discretionary accruals and earnings because of declining profitability and the resulting stock price decline his bonus, such acts lead to a reduction in earnings quality and reduce the quality of financial informatio...
| Main Authors: | , , |
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| Format: | Article |
| Language: | fas |
| Published: |
Shahid Bahonar University of Kerman
2017-11-01
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| Series: | مجله دانش حسابداری |
| Subjects: | |
| Online Access: | https://jak.uk.ac.ir/article_1762_c3feffe0a34e8a3e0724dbf2dc6d6d53.pdf |
| _version_ | 1818824100052729856 |
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| author | Seyed Kazem Ebrahimi (Ph.D) Ali Bahraminasab Reza Mamashli |
| author_facet | Seyed Kazem Ebrahimi (Ph.D) Ali Bahraminasab Reza Mamashli |
| author_sort | Seyed Kazem Ebrahimi (Ph.D) |
| collection | DOAJ |
| description | Managers of companies that are facing financial crisis, have high incentives to use discretionary accruals and earnings because of declining profitability and the resulting stock price decline his bonus, such acts lead to a reduction in earnings quality and reduce the quality of financial information, So the financial crisis has weakened the trust of investors in financial reporting system and the quality of its accounting is of great importance. The purpose of this research is to determine the effect of financial crisis on quality of financial reporting. In this study we use a sample of 90 firms listed in Tehran Stock Exchange during the period 2002 to 2015. The results of multiple regression model and panel data with fixed and random effects, showed that financial crisis has significant negative effect on the earning smoothing, value relevance and conditional conservatism, but it was not found significant correlation between the financial crisis with unconditional conservatism. |
| first_indexed | 2024-12-18T23:50:30Z |
| format | Article |
| id | doaj.art-aa1154a402714d3cb7259b926b829d0b |
| institution | Directory Open Access Journal |
| issn | 2008-8914 2476-292X |
| language | fas |
| last_indexed | 2024-12-18T23:50:30Z |
| publishDate | 2017-11-01 |
| publisher | Shahid Bahonar University of Kerman |
| record_format | Article |
| series | مجله دانش حسابداری |
| spelling | doaj.art-aa1154a402714d3cb7259b926b829d0b2022-12-21T20:46:59ZfasShahid Bahonar University of Kermanمجله دانش حسابداری2008-89142476-292X2017-11-018314116510.22103/jak.2017.9590.22851762The Effect of Financial Crisis on the Quality of Financial ReportingSeyed Kazem Ebrahimi (Ph.D)0Ali Bahraminasab1Reza Mamashli2Assistant Professor of Accounting, Semnan University, Semnan, Iran.Instructor of Accounting, Semnan University, Semnan, Iran.M.A. Student of Accounting, Semnan University, Semnan, Iran.Managers of companies that are facing financial crisis, have high incentives to use discretionary accruals and earnings because of declining profitability and the resulting stock price decline his bonus, such acts lead to a reduction in earnings quality and reduce the quality of financial information, So the financial crisis has weakened the trust of investors in financial reporting system and the quality of its accounting is of great importance. The purpose of this research is to determine the effect of financial crisis on quality of financial reporting. In this study we use a sample of 90 firms listed in Tehran Stock Exchange during the period 2002 to 2015. The results of multiple regression model and panel data with fixed and random effects, showed that financial crisis has significant negative effect on the earning smoothing, value relevance and conditional conservatism, but it was not found significant correlation between the financial crisis with unconditional conservatism.https://jak.uk.ac.ir/article_1762_c3feffe0a34e8a3e0724dbf2dc6d6d53.pdffinancial crisisearnings smoothnessvalue relevanceconservatism |
| spellingShingle | Seyed Kazem Ebrahimi (Ph.D) Ali Bahraminasab Reza Mamashli The Effect of Financial Crisis on the Quality of Financial Reporting مجله دانش حسابداری financial crisis earnings smoothness value relevance conservatism |
| title | The Effect of Financial Crisis on the Quality of Financial Reporting |
| title_full | The Effect of Financial Crisis on the Quality of Financial Reporting |
| title_fullStr | The Effect of Financial Crisis on the Quality of Financial Reporting |
| title_full_unstemmed | The Effect of Financial Crisis on the Quality of Financial Reporting |
| title_short | The Effect of Financial Crisis on the Quality of Financial Reporting |
| title_sort | effect of financial crisis on the quality of financial reporting |
| topic | financial crisis earnings smoothness value relevance conservatism |
| url | https://jak.uk.ac.ir/article_1762_c3feffe0a34e8a3e0724dbf2dc6d6d53.pdf |
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