Investigating the relationship between earnings management patterns and stock crash risk with emphasis on the role of audit quality
The risk of stock price crash is one of the topics of interest in capital market research. Since the main mission of capital market regulators is to protect the rights of investors, it has always been important to consider the factors that affect crash risk. The quality of financial reporting and ea...
| Main Authors: | , |
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| Format: | Article |
| Language: | fas |
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Allameh Tabataba'i University Press
2021-09-01
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| Series: | مطالعات تجربی حسابداری مالی |
| Subjects: | |
| Online Access: | https://qjma.atu.ac.ir/article_12773_f4c82f3045e334987e2dd81f07d6e9aa.pdf |
| _version_ | 1797378276523507712 |
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| author | Erfan Mohammadi hamideh Esnaashari |
| author_facet | Erfan Mohammadi hamideh Esnaashari |
| author_sort | Erfan Mohammadi |
| collection | DOAJ |
| description | The risk of stock price crash is one of the topics of interest in capital market research. Since the main mission of capital market regulators is to protect the rights of investors, it has always been important to consider the factors that affect crash risk. The quality of financial reporting and earnings management patterns are the most important tools available to regulators that can help them manage crash risk aversion, which is why this study addressed them. Earning management patterns include earnings management through accruals and real earnings management. The statistical population of this study is the companies listed on the Tehran Stock Exchange and the research sample was selected in terms of some features (including 167 companies) for the period 2012 to 2018. The research method of the present study is descriptive- correlation and the research hypotheses are tested using the generalized least squares method. The results show that the accrued earnings management model is related to stock crash risk and the use of earnings management through accruals increases the risk of stock price falls. While this is not the case with earnings management through real activities, the application of this earnings management model has nothing to do with the negative changes in stock returns. In addition, audit quality weakens the relationship between accrued earnings management pattern and stock crash risk. While the relationship between real earnings management pattern and stock crash risk is not affected by audit quality |
| first_indexed | 2024-03-08T20:05:24Z |
| format | Article |
| id | doaj.art-cff502ea45fd4b46b7c62f7dba3bb9ac |
| institution | Directory Open Access Journal |
| issn | 2821-0166 2538-2519 |
| language | fas |
| last_indexed | 2024-03-08T20:05:24Z |
| publishDate | 2021-09-01 |
| publisher | Allameh Tabataba'i University Press |
| record_format | Article |
| series | مطالعات تجربی حسابداری مالی |
| spelling | doaj.art-cff502ea45fd4b46b7c62f7dba3bb9ac2023-12-23T10:38:12ZfasAllameh Tabataba'i University Pressمطالعات تجربی حسابداری مالی2821-01662538-25192021-09-01187117120010.22054/qjma.2021.47802.207812773Investigating the relationship between earnings management patterns and stock crash risk with emphasis on the role of audit qualityErfan Mohammadi0hamideh Esnaashari1CSDI Iranassistant professor of accountingThe risk of stock price crash is one of the topics of interest in capital market research. Since the main mission of capital market regulators is to protect the rights of investors, it has always been important to consider the factors that affect crash risk. The quality of financial reporting and earnings management patterns are the most important tools available to regulators that can help them manage crash risk aversion, which is why this study addressed them. Earning management patterns include earnings management through accruals and real earnings management. The statistical population of this study is the companies listed on the Tehran Stock Exchange and the research sample was selected in terms of some features (including 167 companies) for the period 2012 to 2018. The research method of the present study is descriptive- correlation and the research hypotheses are tested using the generalized least squares method. The results show that the accrued earnings management model is related to stock crash risk and the use of earnings management through accruals increases the risk of stock price falls. While this is not the case with earnings management through real activities, the application of this earnings management model has nothing to do with the negative changes in stock returns. In addition, audit quality weakens the relationship between accrued earnings management pattern and stock crash risk. While the relationship between real earnings management pattern and stock crash risk is not affected by audit qualityhttps://qjma.atu.ac.ir/article_12773_f4c82f3045e334987e2dd81f07d6e9aa.pdfaudit qualityreal earnings managementaccrual earnings managementstock crash risk |
| spellingShingle | Erfan Mohammadi hamideh Esnaashari Investigating the relationship between earnings management patterns and stock crash risk with emphasis on the role of audit quality مطالعات تجربی حسابداری مالی audit quality real earnings management accrual earnings management stock crash risk |
| title | Investigating the relationship between earnings management patterns and stock crash risk with emphasis on the role of audit quality |
| title_full | Investigating the relationship between earnings management patterns and stock crash risk with emphasis on the role of audit quality |
| title_fullStr | Investigating the relationship between earnings management patterns and stock crash risk with emphasis on the role of audit quality |
| title_full_unstemmed | Investigating the relationship between earnings management patterns and stock crash risk with emphasis on the role of audit quality |
| title_short | Investigating the relationship between earnings management patterns and stock crash risk with emphasis on the role of audit quality |
| title_sort | investigating the relationship between earnings management patterns and stock crash risk with emphasis on the role of audit quality |
| topic | audit quality real earnings management accrual earnings management stock crash risk |
| url | https://qjma.atu.ac.ir/article_12773_f4c82f3045e334987e2dd81f07d6e9aa.pdf |
| work_keys_str_mv | AT erfanmohammadi investigatingtherelationshipbetweenearningsmanagementpatternsandstockcrashriskwithemphasisontheroleofauditquality AT hamidehesnaashari investigatingtherelationshipbetweenearningsmanagementpatternsandstockcrashriskwithemphasisontheroleofauditquality |