The Impact of Equity Overvaluation on Earnings Management

Researches show that if market value of stock in a firm exceeds its true value, this overvaluation affects the managerial behaviors and corporation actions. This research provides evidence on the role of equity overvaluation on income - increasing earnings management in the future. For this purpose...

Descripción completa

Guardado en:

Detalles Bibliográficos
Autores principales:	Mahmoud Mousavi Shiri, Hassan Khalat Bari, Hesam Vaghfi
Formato:	article
Lenguaje:	FA
Publicado:	Shahid Bahonar University of Kerman 2012
Materias:	overvalued equity earnings management discretionary accruals valuation errors Accounting. Bookkeeping HF5601-5689
Acceso en línea:	https://doaj.org/article/72083216dbfb455cb0e9f2131041639a
Etiquetas:	Agregar Etiqueta Sin Etiquetas, Sea el primero en etiquetar este registro!

id	oai:doaj.org-article:72083216dbfb455cb0e9f2131041639a
record_format	dspace
spelling	oai:doaj.org-article:72083216dbfb455cb0e9f2131041639a2021-11-04T19:42:26ZThe Impact of Equity Overvaluation on Earnings Management2008-89142476-292X10.22103/jak.2012.119https://doaj.org/article/72083216dbfb455cb0e9f2131041639a2012-08-01T00:00:00Zhttps://jak.uk.ac.ir/article_119_8ad0a709efa53a872c19a9de9f4f35bf.pdfhttps://doaj.org/toc/2008-8914https://doaj.org/toc/2476-292XResearches show that if market value of stock in a firm exceeds its true value, this overvaluation affects the managerial behaviors and corporation actions. This research provides evidence on the role of equity overvaluation on income - increasing earnings management in the future. For this purpose the impact of equity overvaluation on subsequent income - increasing earnings management by collection of financial data in 2004 to 2008 years about 60 listed companies in Tehran securities and exchange by using correlation analysis, regression analysis and mean-difference test was tested. Results of research show that equity overvaluation has a positive and significant relationship with subsequent income-increasing earnings management. Indeed in studying companies in Tehran stock exchange, when stock would overvalue by market, firms management tend to support valuation errors to access to benefits of going up stock price through discretionary accruals manipulation.Mahmoud Mousavi ShiriHassan Khalat BariHesam VaghfiShahid Bahonar University of Kermanarticleovervalued equityearnings managementdiscretionary accrualsvaluation errorsAccounting. BookkeepingHF5601-5689FAمجله دانش حسابداری, Vol 3, Iss 9, Pp 143-166 (2012)
institution	DOAJ
collection	DOAJ
language	FA
topic	overvalued equity earnings management discretionary accruals valuation errors Accounting. Bookkeeping HF5601-5689
spellingShingle	overvalued equity earnings management discretionary accruals valuation errors Accounting. Bookkeeping HF5601-5689 Mahmoud Mousavi Shiri Hassan Khalat Bari Hesam Vaghfi The Impact of Equity Overvaluation on Earnings Management
description	Researches show that if market value of stock in a firm exceeds its true value, this overvaluation affects the managerial behaviors and corporation actions. This research provides evidence on the role of equity overvaluation on income - increasing earnings management in the future. For this purpose the impact of equity overvaluation on subsequent income - increasing earnings management by collection of financial data in 2004 to 2008 years about 60 listed companies in Tehran securities and exchange by using correlation analysis, regression analysis and mean-difference test was tested. Results of research show that equity overvaluation has a positive and significant relationship with subsequent income-increasing earnings management. Indeed in studying companies in Tehran stock exchange, when stock would overvalue by market, firms management tend to support valuation errors to access to benefits of going up stock price through discretionary accruals manipulation.
format	article
author	Mahmoud Mousavi Shiri Hassan Khalat Bari Hesam Vaghfi
author_facet	Mahmoud Mousavi Shiri Hassan Khalat Bari Hesam Vaghfi
author_sort	Mahmoud Mousavi Shiri
title	The Impact of Equity Overvaluation on Earnings Management
title_short	The Impact of Equity Overvaluation on Earnings Management
title_full	The Impact of Equity Overvaluation on Earnings Management
title_fullStr	The Impact of Equity Overvaluation on Earnings Management
title_full_unstemmed	The Impact of Equity Overvaluation on Earnings Management
title_sort	impact of equity overvaluation on earnings management
publisher	Shahid Bahonar University of Kerman
publishDate	2012
url	https://doaj.org/article/72083216dbfb455cb0e9f2131041639a
work_keys_str_mv	AT mahmoudmousavishiri theimpactofequityovervaluationonearningsmanagement AT hassankhalatbari theimpactofequityovervaluationonearningsmanagement AT hesamvaghfi theimpactofequityovervaluationonearningsmanagement AT mahmoudmousavishiri impactofequityovervaluationonearningsmanagement AT hassankhalatbari impactofequityovervaluationonearningsmanagement AT hesamvaghfi impactofequityovervaluationonearningsmanagement
_version_	1718444656838049792

The Impact of Equity Overvaluation on Earnings Management

Ejemplares similares