Investigating Accrual-Based and Real Earnings Management in Pre- and Post-Securities Market Act Periods
Earnings management has negative impact on the transparency of financial information, and leads to decreasing the quality of financial reporting process. Earnings management can be limited by corporate governance. Legal supervision is one of the outside strategies for corporate governance and respon...
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| Format: | Article |
| Language: | fas |
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Shahid Bahonar University of Kerman
2015-09-01
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| Series: | مجله دانش حسابداری |
| Subjects: | |
| Online Access: | https://jak.uk.ac.ir/article_987_c7d0f940425604815c72eb83ceab48b2.pdf |
| _version_ | 1818741406455300096 |
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| author | Naser Izadinia Mostafa Dorri Sedeh Masud Nargesi |
| author_facet | Naser Izadinia Mostafa Dorri Sedeh Masud Nargesi |
| author_sort | Naser Izadinia |
| collection | DOAJ |
| description | Earnings management has negative impact on the transparency of financial information, and leads to decreasing the quality of financial reporting process. Earnings management can be limited by corporate governance. Legal supervision is one of the outside strategies for corporate governance and responsibility, which has an undeniable role in confronting such situations. Thus, the objective of this study is investigating the role of Security Market Act as supervisory process over capital market in Iran, in opposition to earnings management (accrual-based and real earnings management). To investigate this issue, discretionary accruals and a combination of abnormal cash flow (from operations, abnormal product expenses and abnormal discretionary expenses) have been considered as proxies for accrual-based earnings management and real earnings management, respectively. The collected data from a sample of 97 companies, listed in the Tehran Stock Exchange in the years 2001 to 2010, was analyzed by multiple regression analysis. The results indicated that there are a significant and negative relationship between accrual-based earnings management and Security Market Act, and a significant and positive relationship between real earning management and this Act. |
| first_indexed | 2024-12-18T01:56:07Z |
| format | Article |
| id | doaj.art-f529638590f44138a945c7b814f94f64 |
| institution | Directory Open Access Journal |
| issn | 2008-8914 2476-292X |
| language | fas |
| last_indexed | 2024-12-18T01:56:07Z |
| publishDate | 2015-09-01 |
| publisher | Shahid Bahonar University of Kerman |
| record_format | Article |
| series | مجله دانش حسابداری |
| spelling | doaj.art-f529638590f44138a945c7b814f94f642022-12-21T21:24:54ZfasShahid Bahonar University of Kermanمجله دانش حسابداری2008-89142476-292X2015-09-01621578510.22103/jak.2015.987987Investigating Accrual-Based and Real Earnings Management in Pre- and Post-Securities Market Act PeriodsNaser Izadinia0Mostafa Dorri Sedeh1Masud Nargesi2دانشیار حسابداری، دانشکده علوم اداری و اقتصاد دانشگاه اصفهاندانشجوی دکتری حسابداری، دانشگاه اصفهانکارشناس ارشد حسابداری، دانشگاه ولیعصر (عج)Earnings management has negative impact on the transparency of financial information, and leads to decreasing the quality of financial reporting process. Earnings management can be limited by corporate governance. Legal supervision is one of the outside strategies for corporate governance and responsibility, which has an undeniable role in confronting such situations. Thus, the objective of this study is investigating the role of Security Market Act as supervisory process over capital market in Iran, in opposition to earnings management (accrual-based and real earnings management). To investigate this issue, discretionary accruals and a combination of abnormal cash flow (from operations, abnormal product expenses and abnormal discretionary expenses) have been considered as proxies for accrual-based earnings management and real earnings management, respectively. The collected data from a sample of 97 companies, listed in the Tehran Stock Exchange in the years 2001 to 2010, was analyzed by multiple regression analysis. The results indicated that there are a significant and negative relationship between accrual-based earnings management and Security Market Act, and a significant and positive relationship between real earning management and this Act.https://jak.uk.ac.ir/article_987_c7d0f940425604815c72eb83ceab48b2.pdfearnings managementaccrual-based earnings managementreal earnings managementsecurities market act of iran |
| spellingShingle | Naser Izadinia Mostafa Dorri Sedeh Masud Nargesi Investigating Accrual-Based and Real Earnings Management in Pre- and Post-Securities Market Act Periods مجله دانش حسابداری earnings management accrual-based earnings management real earnings management securities market act of iran |
| title | Investigating Accrual-Based and Real Earnings Management in Pre- and Post-Securities Market Act Periods |
| title_full | Investigating Accrual-Based and Real Earnings Management in Pre- and Post-Securities Market Act Periods |
| title_fullStr | Investigating Accrual-Based and Real Earnings Management in Pre- and Post-Securities Market Act Periods |
| title_full_unstemmed | Investigating Accrual-Based and Real Earnings Management in Pre- and Post-Securities Market Act Periods |
| title_short | Investigating Accrual-Based and Real Earnings Management in Pre- and Post-Securities Market Act Periods |
| title_sort | investigating accrual based and real earnings management in pre and post securities market act periods |
| topic | earnings management accrual-based earnings management real earnings management securities market act of iran |
| url | https://jak.uk.ac.ir/article_987_c7d0f940425604815c72eb83ceab48b2.pdf |
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