Impact of Accrual-based Earnings Management on Investment Efficiency of the Companies Listed in Tehran Stock Exchange
This study investigates whether and how firm investment efficiency is influenced by the accrual-based earnings management. The major purpose of this paper is investigating and analyzing the relationship between proxy of accrual-based earnings management and firm’s excess investments. Prior researche...
Saved in:
| Main Authors: | , |
|---|---|
| Format: | article |
| Language: | FA |
| Published: |
Shahid Bahonar University of Kerman
2014
|
| Subjects: | |
| Online Access: | https://doaj.org/article/8a474a72273c463bb7f2c6af4b64691c |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| Summary: | This study investigates whether and how firm investment efficiency is influenced by the accrual-based earnings management. The major purpose of this paper is investigating and analyzing the relationship between proxy of accrual-based earnings management and firm’s excess investments. Prior researches suggest that earnings management leads to increase in excess investments of firms (over-investments or under-investments). In this study, the data from 63 listed companies in the Tehran Stock Exchange in the period of 1378-1388 (1999-2009) was collected.
The results indicated that there is a significant relationship between discretionary accruals (as proxy of accrual-based earnings management) and excess investment. This suggests that firm’s investment behavior is influenced by accrual-based earnings management. The results also indicate that there is a significant relationship between discretionary accruals (as independent variable) and firm’s excess investment in the period afterwards |
|---|