Explaining the Ethical and Unethical Behaviors of Earnings Management Using Advanced Structural Models

Objective: Stakeholders such as shareholders, legal entities, investors, and the financial services industry are often praised for their vital role in society. This issue occurs while others believe that the financial industry needs to strengthen the corporate strategy system to increase organizatio...

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Autores principales:	Saied Behmanesh, Rezvan Hejazi, Seyede Mahboobeh Jafari
Formato:	article
Lenguaje:	FA
Publicado:	Shahid Bahonar University of Kerman 2020
Materias:	ethical behaviors earnings management ethical beliefs ethical pressures Accounting. Bookkeeping HF5601-5689
Acceso en línea:	https://doaj.org/article/883b3c1bd117413185eec3fb637763c2
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spelling	oai:doaj.org-article:883b3c1bd117413185eec3fb637763c22021-11-04T19:56:33ZExplaining the Ethical and Unethical Behaviors of Earnings Management Using Advanced Structural Models2008-89142476-292X10.22103/jak.2020.15461.3205https://doaj.org/article/883b3c1bd117413185eec3fb637763c22020-12-01T00:00:00Zhttps://jak.uk.ac.ir/article_2757_be0fe502647256db0a36f38b0b300fb6.pdfhttps://doaj.org/toc/2008-8914https://doaj.org/toc/2476-292XObjective: Stakeholders such as shareholders, legal entities, investors, and the financial services industry are often praised for their vital role in society. This issue occurs while others believe that the financial industry needs to strengthen the corporate strategy system to increase organizational capabilities and economic growth. A third group believes that those are involved in the financial industry can bring far-reaching benefits to society by reducing injustice in the distribution of poverty and income. Many researchers consider ethics as an important factor in dealing with behavioral anomalies. The purpose of this study is to explain the ethical and unethical behaviors of earnings management using advanced structural models. Method: The present study is of semi-experimental and semi-applied type and is performed by the qualitative or judgmental method in different stages. The field research was conducted after a random selection of 403 financial managers of the Tehran Stock Exchange. Results: Analysis of relationships between variables based on the method of structural equations showed that ethical pressure, organizational ethical beliefs, the culture of aversion to power, and ethical justification affect profit management behavior. Conclusion: The analysis of opinions consistency showed that there is a consensus about the ethical and immoral behaviors of earnings management between types of public opinions, regardless of gender, age, experience, marital status, and level of education and the public unanimously exposes the high importance of earnings management behaviors. Some compelling factors made it clear. After diagnostic tests consisting of the evaluation of normality of the distribution of variables, homogeneity of variances, confirmatory factor analysis, and validation of the estimation of the structural equation model, we used advanced structural equation models, path analysis, and regression estimation to interpret the direct relationship between directional behavior and the effective factors of moderating variables in these relationships. Finally, the coefficient of determination was estimated to validate the relationships and the t-student statistic was used to measure the significance of these relationships. Summarizing the relationships among variables showed that ethical pressures have positive impacts on the formation of one's moral beliefs and one's level of moral justification. Ethical justification has a positive impact on earnings management behaviors. The level of one's moral beliefs has a positive effect on his or her moral justification. Organizational culture for individual empowerment has a positive effect on ethical beliefs, ethical justification, and ultimately, on profit management behaviors. A person's moral beliefs exacerbate the relationship between the moral pressure on the individual and his or her level of moral justification. Finally, one's escapist culture exacerbates the relationship between ethical pressures on the individual and the emergence of profit management behaviors.Saied BehmaneshRezvan HejaziSeyede Mahboobeh JafariShahid Bahonar University of Kermanarticleethical behaviorsearnings managementethical beliefsethical pressuresAccounting. BookkeepingHF5601-5689FAمجله دانش حسابداری, Vol 11, Iss 4, Pp 211-233 (2020)
institution	DOAJ
collection	DOAJ
language	FA
topic	ethical behaviors earnings management ethical beliefs ethical pressures Accounting. Bookkeeping HF5601-5689
spellingShingle	ethical behaviors earnings management ethical beliefs ethical pressures Accounting. Bookkeeping HF5601-5689 Saied Behmanesh Rezvan Hejazi Seyede Mahboobeh Jafari Explaining the Ethical and Unethical Behaviors of Earnings Management Using Advanced Structural Models
description	Objective: Stakeholders such as shareholders, legal entities, investors, and the financial services industry are often praised for their vital role in society. This issue occurs while others believe that the financial industry needs to strengthen the corporate strategy system to increase organizational capabilities and economic growth. A third group believes that those are involved in the financial industry can bring far-reaching benefits to society by reducing injustice in the distribution of poverty and income. Many researchers consider ethics as an important factor in dealing with behavioral anomalies. The purpose of this study is to explain the ethical and unethical behaviors of earnings management using advanced structural models. Method: The present study is of semi-experimental and semi-applied type and is performed by the qualitative or judgmental method in different stages. The field research was conducted after a random selection of 403 financial managers of the Tehran Stock Exchange. Results: Analysis of relationships between variables based on the method of structural equations showed that ethical pressure, organizational ethical beliefs, the culture of aversion to power, and ethical justification affect profit management behavior. Conclusion: The analysis of opinions consistency showed that there is a consensus about the ethical and immoral behaviors of earnings management between types of public opinions, regardless of gender, age, experience, marital status, and level of education and the public unanimously exposes the high importance of earnings management behaviors. Some compelling factors made it clear. After diagnostic tests consisting of the evaluation of normality of the distribution of variables, homogeneity of variances, confirmatory factor analysis, and validation of the estimation of the structural equation model, we used advanced structural equation models, path analysis, and regression estimation to interpret the direct relationship between directional behavior and the effective factors of moderating variables in these relationships. Finally, the coefficient of determination was estimated to validate the relationships and the t-student statistic was used to measure the significance of these relationships. Summarizing the relationships among variables showed that ethical pressures have positive impacts on the formation of one's moral beliefs and one's level of moral justification. Ethical justification has a positive impact on earnings management behaviors. The level of one's moral beliefs has a positive effect on his or her moral justification. Organizational culture for individual empowerment has a positive effect on ethical beliefs, ethical justification, and ultimately, on profit management behaviors. A person's moral beliefs exacerbate the relationship between the moral pressure on the individual and his or her level of moral justification. Finally, one's escapist culture exacerbates the relationship between ethical pressures on the individual and the emergence of profit management behaviors.
format	article
author	Saied Behmanesh Rezvan Hejazi Seyede Mahboobeh Jafari
author_facet	Saied Behmanesh Rezvan Hejazi Seyede Mahboobeh Jafari
author_sort	Saied Behmanesh
title	Explaining the Ethical and Unethical Behaviors of Earnings Management Using Advanced Structural Models
title_short	Explaining the Ethical and Unethical Behaviors of Earnings Management Using Advanced Structural Models
title_full	Explaining the Ethical and Unethical Behaviors of Earnings Management Using Advanced Structural Models
title_fullStr	Explaining the Ethical and Unethical Behaviors of Earnings Management Using Advanced Structural Models
title_full_unstemmed	Explaining the Ethical and Unethical Behaviors of Earnings Management Using Advanced Structural Models
title_sort	explaining the ethical and unethical behaviors of earnings management using advanced structural models
publisher	Shahid Bahonar University of Kerman
publishDate	2020
url	https://doaj.org/article/883b3c1bd117413185eec3fb637763c2
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Explaining the Ethical and Unethical Behaviors of Earnings Management Using Advanced Structural Models

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