Impact of Agency Costs on the Relationship between Internal Control Quality and Earnings Management

According to the statement of Tehran Securities and Exchange Organization (SEO), reporting important weaknesses of internal controls and designing an effective system of internal control are necessary in achieving micro and macro goals of company. This study investigates the effect of agency costs o...

Descripción completa

Guardado en:

Detalles Bibliográficos
Autores principales:	Mahdi Faghani (Ph.D), Hadi Pahlavan
Formato:	article
Lenguaje:	FA
Publicado:	Shahid Bahonar University of Kerman 2018
Materias:	quality of internal controls earnings management agency costs Accounting. Bookkeeping HF5601-5689
Acceso en línea:	https://doaj.org/article/2c60f3516f914c5dbe12d5dc38a65311
Etiquetas:	Agregar Etiqueta Sin Etiquetas, Sea el primero en etiquetar este registro!

id	oai:doaj.org-article:2c60f3516f914c5dbe12d5dc38a65311
record_format	dspace
spelling	oai:doaj.org-article:2c60f3516f914c5dbe12d5dc38a653112021-11-04T19:54:11ZImpact of Agency Costs on the Relationship between Internal Control Quality and Earnings Management2008-89142476-292X10.22103/jak.2018.11372.2565https://doaj.org/article/2c60f3516f914c5dbe12d5dc38a653112018-10-01T00:00:00Zhttps://jak.uk.ac.ir/article_2078_334fc70ec047a39d2b7e839777e04b1c.pdfhttps://doaj.org/toc/2008-8914https://doaj.org/toc/2476-292XAccording to the statement of Tehran Securities and Exchange Organization (SEO), reporting important weaknesses of internal controls and designing an effective system of internal control are necessary in achieving micro and macro goals of company. This study investigates the effect of agency costs on the relationship between quality of internal controls and earnings management in the listed companies in the Tehran Stock Exchange (TSE). We used the data collected from 96 companies in the TSE, during 2010-2015, with totally 672 firm-years observations, and the regression panel data model. Results showed that agency costs moderate the relationship between quality of internal controls and earnings management. And there is inverse relationship between quality of internal controls and earnings management in the absence of agency costs. This inverse relationship becomes exaggerated, when there are agency costs. This is because quality of internal controls affects earnings management of companies by reducing agency costs.Mahdi Faghani (Ph.D)Hadi PahlavanShahid Bahonar University of Kermanarticlequality of internal controlsearnings management agency costsAccounting. BookkeepingHF5601-5689FAمجله دانش حسابداری, Vol 9, Iss 3, Pp 65-87 (2018)
institution	DOAJ
collection	DOAJ
language	FA
topic	quality of internal controls earnings management agency costs Accounting. Bookkeeping HF5601-5689
spellingShingle	quality of internal controls earnings management agency costs Accounting. Bookkeeping HF5601-5689 Mahdi Faghani (Ph.D) Hadi Pahlavan Impact of Agency Costs on the Relationship between Internal Control Quality and Earnings Management
description	According to the statement of Tehran Securities and Exchange Organization (SEO), reporting important weaknesses of internal controls and designing an effective system of internal control are necessary in achieving micro and macro goals of company. This study investigates the effect of agency costs on the relationship between quality of internal controls and earnings management in the listed companies in the Tehran Stock Exchange (TSE). We used the data collected from 96 companies in the TSE, during 2010-2015, with totally 672 firm-years observations, and the regression panel data model. Results showed that agency costs moderate the relationship between quality of internal controls and earnings management. And there is inverse relationship between quality of internal controls and earnings management in the absence of agency costs. This inverse relationship becomes exaggerated, when there are agency costs. This is because quality of internal controls affects earnings management of companies by reducing agency costs.
format	article
author	Mahdi Faghani (Ph.D) Hadi Pahlavan
author_facet	Mahdi Faghani (Ph.D) Hadi Pahlavan
author_sort	Mahdi Faghani (Ph.D)
title	Impact of Agency Costs on the Relationship between Internal Control Quality and Earnings Management
title_short	Impact of Agency Costs on the Relationship between Internal Control Quality and Earnings Management
title_full	Impact of Agency Costs on the Relationship between Internal Control Quality and Earnings Management
title_fullStr	Impact of Agency Costs on the Relationship between Internal Control Quality and Earnings Management
title_full_unstemmed	Impact of Agency Costs on the Relationship between Internal Control Quality and Earnings Management
title_sort	impact of agency costs on the relationship between internal control quality and earnings management
publisher	Shahid Bahonar University of Kerman
publishDate	2018
url	https://doaj.org/article/2c60f3516f914c5dbe12d5dc38a65311
work_keys_str_mv	AT mahdifaghaniphd impactofagencycostsontherelationshipbetweeninternalcontrolqualityandearningsmanagement AT hadipahlavan impactofagencycostsontherelationshipbetweeninternalcontrolqualityandearningsmanagement
_version_	1718444581105696768

Impact of Agency Costs on the Relationship between Internal Control Quality and Earnings Management

Ejemplares similares