Financial Distress as a Risk Factor for the Occurrence of Earnings Management
To be survived and also to continue the activities, firms need enough resources such as enough cash to pay debtors. If the firm does not have enough resources to respond its requirements, it will be frustrated and firms in facing with frustration, manipulate the accounting profit with one of the per...
| Main Authors: | , , |
|---|---|
| Format: | Article |
| Language: | fas |
| Published: |
Alzahra University
2015-09-01
|
| Series: | راهبرد مدیریت مالی |
| Subjects: | |
| Online Access: | http://jfm.alzahra.ac.ir/article_2262_701235443cc1524671d9e3868973cccf.pdf |
| _version_ | 1819056077847658496 |
|---|---|
| author | naser Izadinia gholamreza masourfar musa rashidi khazaee |
| author_facet | naser Izadinia gholamreza masourfar musa rashidi khazaee |
| author_sort | naser Izadinia |
| collection | DOAJ |
| description | To be survived and also to continue the activities, firms need enough resources such as enough cash to pay debtors. If the firm does not have enough resources to respond its requirements, it will be frustrated and firms in facing with frustration, manipulate the accounting profit with one of the performance evaluation items. In these conditions, management manages the profit with accounts manipulation and his purpose is to provide good information and news to capital market to protect the firm value. In accounts manipulation, the existence philosophy of financial inventory would be tarnished and their reliance ability would be lost. The separation criterion of current research is the Z Altman's model which has been produced from 43 financial frustrated and 43 safe firms. The manipulation variables of earnings and production costs are obtained by (Ruchury, 2006) and the manipulation variable of production operational capital accruals is obtained by (Kasznik, 1999) model. Finally, the statistical results of research indicate that the firm management manipulated the actual items (earnings and production costs) a year before the bankruptcy but did not manipulate the accrual working capital. |
| first_indexed | 2024-12-21T13:17:41Z |
| format | Article |
| id | doaj.art-ca4a3ad3ac6844dab3ae666150337dc3 |
| institution | Directory Open Access Journal |
| issn | 2345-3214 2538-1962 |
| language | fas |
| last_indexed | 2024-12-21T13:17:41Z |
| publishDate | 2015-09-01 |
| publisher | Alzahra University |
| record_format | Article |
| series | راهبرد مدیریت مالی |
| spelling | doaj.art-ca4a3ad3ac6844dab3ae666150337dc32022-12-21T19:02:41ZfasAlzahra Universityراهبرد مدیریت مالی2345-32142538-19622015-09-0133254710.22051/jfm.2015.22622262Financial Distress as a Risk Factor for the Occurrence of Earnings Managementnaser Izadinia0gholamreza masourfar1musa rashidi khazaee2Isfahan universityurmia universityIsfahan universityTo be survived and also to continue the activities, firms need enough resources such as enough cash to pay debtors. If the firm does not have enough resources to respond its requirements, it will be frustrated and firms in facing with frustration, manipulate the accounting profit with one of the performance evaluation items. In these conditions, management manages the profit with accounts manipulation and his purpose is to provide good information and news to capital market to protect the firm value. In accounts manipulation, the existence philosophy of financial inventory would be tarnished and their reliance ability would be lost. The separation criterion of current research is the Z Altman's model which has been produced from 43 financial frustrated and 43 safe firms. The manipulation variables of earnings and production costs are obtained by (Ruchury, 2006) and the manipulation variable of production operational capital accruals is obtained by (Kasznik, 1999) model. Finally, the statistical results of research indicate that the firm management manipulated the actual items (earnings and production costs) a year before the bankruptcy but did not manipulate the accrual working capital.http://jfm.alzahra.ac.ir/article_2262_701235443cc1524671d9e3868973cccf.pdfDiscretionary AccrualsFinancial distressunusual cash flowEarnings ManagementAbnormal production costs |
| spellingShingle | naser Izadinia gholamreza masourfar musa rashidi khazaee Financial Distress as a Risk Factor for the Occurrence of Earnings Management راهبرد مدیریت مالی Discretionary Accruals Financial distress unusual cash flow Earnings Management Abnormal production costs |
| title | Financial Distress as a Risk Factor for the Occurrence of Earnings Management |
| title_full | Financial Distress as a Risk Factor for the Occurrence of Earnings Management |
| title_fullStr | Financial Distress as a Risk Factor for the Occurrence of Earnings Management |
| title_full_unstemmed | Financial Distress as a Risk Factor for the Occurrence of Earnings Management |
| title_short | Financial Distress as a Risk Factor for the Occurrence of Earnings Management |
| title_sort | financial distress as a risk factor for the occurrence of earnings management |
| topic | Discretionary Accruals Financial distress unusual cash flow Earnings Management Abnormal production costs |
| url | http://jfm.alzahra.ac.ir/article_2262_701235443cc1524671d9e3868973cccf.pdf |
| work_keys_str_mv | AT naserizadinia financialdistressasariskfactorfortheoccurrenceofearningsmanagement AT gholamrezamasourfar financialdistressasariskfactorfortheoccurrenceofearningsmanagement AT musarashidikhazaee financialdistressasariskfactorfortheoccurrenceofearningsmanagement |