바로가기메뉴

본문 바로가기 주메뉴 바로가기

ACOMS+ 및 학술지 리포지터리 설명회

  • 한국과학기술정보연구원(KISTI) 서울분원 대회의실(별관 3층)
  • 2024년 07월 03일(수) 13:30
 

logo

Corporate governance and earnings quality: the Iranian evidence

Corporate governance and earnings quality: the Iranian evidence

The Journal of Distribution Science(JDS) / The Journal of Distribution Science, (P)1738-3110; (E)2093-7717
2013, v.11 no.6, pp.5-11
https://doi.org/https://doi.org/10.13106/jds.2013.vol11.no6.5
Salehi, Mahdi (Accounting Department, Ferdowsi University of Mashhad)
Asgari, Azadeh (Arak Branch, Islamic Azad University)
  • 다운로드 수
  • 조회수

Abstract

Purpose - The main question in this study is whether there is any relationship between corporate governance variables and earnings quality. The size of the board and audit committee, the number of stockholding managers and non-executive directors, and management quality are considered as independent corporate governance variables in the hypotheses. Research design, data, and methodology - Earnings quality is used as the dependent variable. Input from the abovementioned variables are drawn from 94 listed companies in the Tehran Stock Exchange for the period between 2006 and 2010. Results - This study examines corporate governance aspects such as the size of the board of directors, the number of shares held by the board, the board's independence, and the percentage of non-executive directors. The results show that establishing an audit committee has a significant role in ensuring higher quality reported earnings. Conclusions - The regression statistics output reveals a meaningful relationship between earnings quality and the size of the board of directors, the number of non-executive directors, and the size of the audit committee. This result indicates that improving earnings quality requires that the size of the board of directors be taken into account.

keywords
Audit Committee, Corporate Governance, Discretionary Accruals, Earnings Quality, Management Quality

참고문헌

1.

Abbott, L. J., Parker, S, and Park, Y, (2000), "The effects of audit committee activity and independence on corporate fraud", Managerial Finance, 26(11), 55-67.

2.

Abdelghany, K. (2005), "Measuring the quality of Earnings”, Management Auditing Journal, 15(9),1001-1015.

3.

Alishah, S., Alibutt, S. and Hasan, A. (2009), "Corporate Governance and Earning management empirical Evidence from Pakistani listed Companies”, Euro journal of scientific research, 26(4), 624-638.

4.

Bradbury, M. E. E., Mak, Y.T. and Tan, S.M.. (2004), "Board Characteristics, Audit Committee Characteristics and Abnormal Accruals" Working Paper, Available at: http://ssrn.com/abstract= 535764

5.

Bryan, D. M., Carol, L. and Samuel, T. L. (2004), "The Influence of Independent and Effective Audit Committees on Earnings Quality", Working Paper, Available at: http://ssrn.com/abstract= 488082

6.

Carcello, J., Hermanson, D.R., Neal, T.L. and Riley, Jr. (2002), "Board characteristics and audit fees", Contemporary Accounting Research, 19(3), 365-385.

7.

Carson, E. (2002), "Factors Associated with the Development of Board Sub-committees", Corporate Governance an International Review, 10, 4-18.

8.

Chan, K., Chan, L., Jegadeesh, N. and Lakonishok, J. (2006), "Earnings Quality and stock Returns”, Journal of Business, 79(3), 1041-1082.

9.

Chen, Y., Moroney, R. & Houghton, K. (2005), "Audit committee composition and the use of an industry specialist audit firm", Accounting & finance, 45(2), 217-239.

10.

Chtourou, S. M., Bédard, J. and Courteau, L. (2004), "The Effect of Audit Committee Expertise, Independence, and Activity on Aggressive Earnings Management", International Journal of Auditing, 23(2), 13-36.

11.

Cohen, J., Krishnamoorthy, G. & Wright, A. (2004), "The Corporate Financial Moasic and Financial Reporting Quality”, Journal of Accounting Literature, 23, 87-173.

12.

Cornett, M., McNutt, J. and Tehranian, H. (2010), "The financial crisis, internal corporate governance, and the performance of publicly-traded U.S. bank holding companies”, Corporate Governance, 8(1), 28-45.

13.

Davidson, R., Stewart, J. G. and Kent, P. (2005), "Internal governance structures and earnings management", Accounting and Finance, 45(2), 241-268.

14.

Dechow, P. M., Sloan, R. G. and Sweeney, A. P. (1996), "Causes and consequences of earnings manipulation: an analysis of firms subject to enforcement action by the SEC", Contemporary Accounting Research, 13(1), 1-36.

15.

Defond, M. L. and Jiambalvo, J. (1991), “Incidence and circumstances of accounting errors”, The Accounting Review, 66(3), 643– 655.

16.

Felo, A. J., Krishnamurthy, S. and Solieri, S. A. (2003), "Audit Committee Characteristics and the Perceived Quality of Financial Reporting: An Empirical Analysis", Working Paper, Available at: http://ssrn.com/abstract=401240

17.

Gürbüz . A., Aybars, A. and Kutlu, Ö. (2010), "Corporate Governance and Financial Performance with a Perspective on Institutional Ownership: Empirical Evidence from Turkey " , Journal of Applied Management Accounting Research, 8(2), 21-38.

18.

Karamanou, I. and Vafeas, N. (2005), "The Association between Corporate Boards, Audit Committees, and Management Earnings Forecasts: An Empirical Analysis", Journal of Accounting Research, 43(3), 453.

19.

Khajavy, S. and Nazemi, A. (2005), “Examination of relationship be tween earnings quality and stock return emphasizing the role of accruals in Tehran Stock Exchange”, Iranian Accounting and Auditing Review, 40, 37-60.

20.

Klein, A. (2006), ”Audit committee, board of director characteristics and earning management”, Low and economics research paper series working paper, 783-804.

21.

Lantz, J., Montandraub, S. and Sahute, J. (2011), "Activism of Institutional Investors, Corporate Governance Alerts and Financial Performance¬", International Journal of Business, 15(1), 21-33.

22.

Liu, C., Uchida, K. and Yang, Y. (2010), “Corporate governance and firm value during the global financial crisis: Evidence from China", Review of Economics and Finance, 20(4), 562-573.

23.

McMullen, D.A. (1996), "Audit committee performance: An investigation of the consequences associated with audit committees", Auditing, 15(1), 87-102.

24.

Park, Y. (2004), “Board composition and earning management in Canada”, Journal of Corporate Finance, 10, 431–457.

25.

Passaros, J. and Seamer, M. (2004), "Australian Audit Committees: Do They Meet Best Practice Guidlines?', Australian Accounting Review, 14(3), 77-86.

26.

Raghunandan, K., Rama, D.V. and Scarbrough, D.P. (1998), "Accounting and Auditing Knowledge Level of Canadian Audit Committees: Some Empirical Evidence", Journal of International Accounting, Auditing and Taxation, 7(2), 181-194.

27.

Reddy, K., Locke, S. and Scrimgeour, F. (2010), "The efficacy of principle-based corporate governance practices and firm financial performance", International Journal of Managerial Finance, 6(3), 190–219.

28.

Stanwick, P. and Stanwick, S. (2010), "The Relationship Between Corporate Governance and Financial Performance: An Empirical Study of Canadian Firms" the Business Review, 16(2), 635-646.

29.

Zahn, M. V. and Tower, G. (2004), "Audit committee features and earnings management: further evidence from Singapore", International Journal of Business Governance and Ethics, 1(2), 233-255.

The Journal of Distribution Science(JDS)