Relationship between Accounting Comparability and Accrual-based and Real Earnings Management

Objective: Earnings are one of the most important factors influencing economic decisions, so corporate executives may manage the earnings to show stability in improvements and efficiency. Managers can manipulate the earnings by choosing discretionary accruals or regulating company's actual acti...

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Autores principales:	Mohammad Omid Akhgar (Ph.D), Samireh Davoodi
Formato:	article
Lenguaje:	FA
Publicado:	Shahid Bahonar University of Kerman 2019
Materias:	earnings management accrual-based earnings management accruals real earnings management Accounting. Bookkeeping HF5601-5689
Acceso en línea:	https://doaj.org/article/ee452320889341bcb51f127ed0d9251e
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spelling	oai:doaj.org-article:ee452320889341bcb51f127ed0d9251e2021-11-04T19:54:34ZRelationship between Accounting Comparability and Accrual-based and Real Earnings Management2008-89142476-292X10.22103/jak.2019.11398.2570https://doaj.org/article/ee452320889341bcb51f127ed0d9251e2019-05-01T00:00:00Zhttps://jak.uk.ac.ir/article_2265_b2d2e357d73352be4ad80fb8e63a4f85.pdfhttps://doaj.org/toc/2008-8914https://doaj.org/toc/2476-292XObjective: Earnings are one of the most important factors influencing economic decisions, so corporate executives may manage the earnings to show stability in improvements and efficiency. Managers can manipulate the earnings by choosing discretionary accruals or regulating company's actual activities. If the accounting system of a company and its results are comparable, managers' motivation for opportunistic behavior of earnings management reduces, and as a result, external users can analyze the company's actual economic performances more accurately. The purpose of this study is to investigate the relationship between accounting comparability and the accrual-based earnings management, and then, the result for real earnings management in the companies listed in the Tehran Stock Exchange, TSE. Methods: This research is an applied study and the correlation-based in the nature. The sample consists of 122 firms in the TSE in the years 2011 to 2015, chosen by the systematic deletion method of sampling to reach the main sample. To examine the relationship between variables, multiple regression and generalized least squares methods were used. Results: The results showed that when the company's accounting system provides comparable figures, the company's accrual-based earning management decreases, and so managers to handle their earnings manipulate their real activities, which lead to increase in real earnings management. Conclusion: Based on the results of the research, firms' managers are recommended to pay more attention to the comparability of financial statements due to its importance in earnings management.Mohammad Omid Akhgar (Ph.D)Samireh DavoodiShahid Bahonar University of Kermanarticleearnings managementaccrual-based earnings managementaccrualsreal earnings managementAccounting. BookkeepingHF5601-5689FAمجله دانش حسابداری, Vol 10, Iss 1, Pp 91-113 (2019)
institution	DOAJ
collection	DOAJ
language	FA
topic	earnings management accrual-based earnings management accruals real earnings management Accounting. Bookkeeping HF5601-5689
spellingShingle	earnings management accrual-based earnings management accruals real earnings management Accounting. Bookkeeping HF5601-5689 Mohammad Omid Akhgar (Ph.D) Samireh Davoodi Relationship between Accounting Comparability and Accrual-based and Real Earnings Management
description	Objective: Earnings are one of the most important factors influencing economic decisions, so corporate executives may manage the earnings to show stability in improvements and efficiency. Managers can manipulate the earnings by choosing discretionary accruals or regulating company's actual activities. If the accounting system of a company and its results are comparable, managers' motivation for opportunistic behavior of earnings management reduces, and as a result, external users can analyze the company's actual economic performances more accurately. The purpose of this study is to investigate the relationship between accounting comparability and the accrual-based earnings management, and then, the result for real earnings management in the companies listed in the Tehran Stock Exchange, TSE. Methods: This research is an applied study and the correlation-based in the nature. The sample consists of 122 firms in the TSE in the years 2011 to 2015, chosen by the systematic deletion method of sampling to reach the main sample. To examine the relationship between variables, multiple regression and generalized least squares methods were used. Results: The results showed that when the company's accounting system provides comparable figures, the company's accrual-based earning management decreases, and so managers to handle their earnings manipulate their real activities, which lead to increase in real earnings management. Conclusion: Based on the results of the research, firms' managers are recommended to pay more attention to the comparability of financial statements due to its importance in earnings management.
format	article
author	Mohammad Omid Akhgar (Ph.D) Samireh Davoodi
author_facet	Mohammad Omid Akhgar (Ph.D) Samireh Davoodi
author_sort	Mohammad Omid Akhgar (Ph.D)
title	Relationship between Accounting Comparability and Accrual-based and Real Earnings Management
title_short	Relationship between Accounting Comparability and Accrual-based and Real Earnings Management
title_full	Relationship between Accounting Comparability and Accrual-based and Real Earnings Management
title_fullStr	Relationship between Accounting Comparability and Accrual-based and Real Earnings Management
title_full_unstemmed	Relationship between Accounting Comparability and Accrual-based and Real Earnings Management
title_sort	relationship between accounting comparability and accrual-based and real earnings management
publisher	Shahid Bahonar University of Kerman
publishDate	2019
url	https://doaj.org/article/ee452320889341bcb51f127ed0d9251e
work_keys_str_mv	AT mohammadomidakhgarphd relationshipbetweenaccountingcomparabilityandaccrualbasedandrealearningsmanagement AT samirehdavoodi relationshipbetweenaccountingcomparabilityandaccrualbasedandrealearningsmanagement
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Relationship between Accounting Comparability and Accrual-based and Real Earnings Management

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