The Moderating Effect of Equity Financing and Ownership Type on the Relationship between Dividend Policy and Financial Reporting Quality

Objective: The aim of this study is to investigate the effect of equity financing and ownership type on the relationship between dividend policy and financial reporting quality of listed companies in the Tehran Stock Exchange. Methods: The statistical sample consists of 124 companies during 2011-201...

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Autores principales:	Hoda Eskandar, Amin Bolori
Formato:	article
Lenguaje:	FA
Publicado:	University of Tehran 2021
Materias:	dividend policy ownership type equity financing accruals quality conservatism earnings forecasting power Accounting. Bookkeeping HF5601-5689 Finance HG1-9999
Acceso en línea:	https://doaj.org/article/757637588ed749cdb5c01a99f496dfc3
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spelling	oai:doaj.org-article:757637588ed749cdb5c01a99f496dfc32021-11-14T05:28:15ZThe Moderating Effect of Equity Financing and Ownership Type on the Relationship between Dividend Policy and Financial Reporting Quality2645-80202645-803910.22059/acctgrev.2021.317660.1008505https://doaj.org/article/757637588ed749cdb5c01a99f496dfc32021-08-01T00:00:00Zhttps://acctgrev.ut.ac.ir/article_83003_ae81fb3c21de68268adcd86cc41ba318.pdfhttps://doaj.org/toc/2645-8020https://doaj.org/toc/2645-8039Objective: The aim of this study is to investigate the effect of equity financing and ownership type on the relationship between dividend policy and financial reporting quality of listed companies in the Tehran Stock Exchange. Methods: The statistical sample consists of 124 companies during 2011-2018. The dependent variable of this study is financial reporting quality. Some proxies are used for measuring this variable, such as accruals quality, earnings forecasting power and conservatism. In this study, Dechow and Dichev model (2002) is used to calculate the quality of accruals and conservatism is measured based on Givoly and Hayn model (2000). Results: The results of statistical analysis show that there is a positive and significant relationship between dividend policy and financial reporting quality (accruals quality and earnings forecasting power). Moreover, the findings indicate that the type of firm ownership (government or private ownership) moderates this relationship. In addition, equity financing moderates the relationship between conservatism and dividend. Conclusion: Companies which pay more dividends, have more accruals quality. In addition, by increasing the amount of dividends paid, earnings forecasting power increases. According to findings, the relationship between dividend and reporting quality in the firms whose government ownership is weaker than other firms and in these firms, dividend does not have informative content about high reporting quality. Additionally, equity financing only weakens the relation between conservatism and dividend and does not affect the relationship dividend and two other measures of reporting qualityHoda EskandarAmin Bolori University of Tehranarticledividend policyownership typeequity financingaccruals qualityconservatismearnings forecasting powerAccounting. BookkeepingHF5601-5689FinanceHG1-9999FAبررسی‌های حسابداری و حسابرسی, Vol 28, Iss 2, Pp 206-225 (2021)
institution	DOAJ
collection	DOAJ
language	FA
topic	dividend policy ownership type equity financing accruals quality conservatism earnings forecasting power Accounting. Bookkeeping HF5601-5689 Finance HG1-9999
spellingShingle	dividend policy ownership type equity financing accruals quality conservatism earnings forecasting power Accounting. Bookkeeping HF5601-5689 Finance HG1-9999 Hoda Eskandar Amin Bolori The Moderating Effect of Equity Financing and Ownership Type on the Relationship between Dividend Policy and Financial Reporting Quality
description	Objective: The aim of this study is to investigate the effect of equity financing and ownership type on the relationship between dividend policy and financial reporting quality of listed companies in the Tehran Stock Exchange. Methods: The statistical sample consists of 124 companies during 2011-2018. The dependent variable of this study is financial reporting quality. Some proxies are used for measuring this variable, such as accruals quality, earnings forecasting power and conservatism. In this study, Dechow and Dichev model (2002) is used to calculate the quality of accruals and conservatism is measured based on Givoly and Hayn model (2000). Results: The results of statistical analysis show that there is a positive and significant relationship between dividend policy and financial reporting quality (accruals quality and earnings forecasting power). Moreover, the findings indicate that the type of firm ownership (government or private ownership) moderates this relationship. In addition, equity financing moderates the relationship between conservatism and dividend. Conclusion: Companies which pay more dividends, have more accruals quality. In addition, by increasing the amount of dividends paid, earnings forecasting power increases. According to findings, the relationship between dividend and reporting quality in the firms whose government ownership is weaker than other firms and in these firms, dividend does not have informative content about high reporting quality. Additionally, equity financing only weakens the relation between conservatism and dividend and does not affect the relationship dividend and two other measures of reporting quality
format	article
author	Hoda Eskandar Amin Bolori
author_facet	Hoda Eskandar Amin Bolori
author_sort	Hoda Eskandar
title	The Moderating Effect of Equity Financing and Ownership Type on the Relationship between Dividend Policy and Financial Reporting Quality
title_short	The Moderating Effect of Equity Financing and Ownership Type on the Relationship between Dividend Policy and Financial Reporting Quality
title_full	The Moderating Effect of Equity Financing and Ownership Type on the Relationship between Dividend Policy and Financial Reporting Quality
title_fullStr	The Moderating Effect of Equity Financing and Ownership Type on the Relationship between Dividend Policy and Financial Reporting Quality
title_full_unstemmed	The Moderating Effect of Equity Financing and Ownership Type on the Relationship between Dividend Policy and Financial Reporting Quality
title_sort	moderating effect of equity financing and ownership type on the relationship between dividend policy and financial reporting quality
publisher	University of Tehran
publishDate	2021
url	https://doaj.org/article/757637588ed749cdb5c01a99f496dfc3
work_keys_str_mv	AT hodaeskandar themoderatingeffectofequityfinancingandownershiptypeontherelationshipbetweendividendpolicyandfinancialreportingquality AT aminbolori themoderatingeffectofequityfinancingandownershiptypeontherelationshipbetweendividendpolicyandfinancialreportingquality AT hodaeskandar moderatingeffectofequityfinancingandownershiptypeontherelationshipbetweendividendpolicyandfinancialreportingquality AT aminbolori moderatingeffectofequityfinancingandownershiptypeontherelationshipbetweendividendpolicyandfinancialreportingquality
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The Moderating Effect of Equity Financing and Ownership Type on the Relationship between Dividend Policy and Financial Reporting Quality

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