The Effect of Strong Shareholders on the Income Management with an Emphasis on the Role of Audit Quality in Listed Companies of Tehran Stock Exchange

Document Type : Research Paper

Authors

1 Assistant Professor of Accounting, Islamic Azad University of Bostanabad

2 Graduate Student, Young Researchers Club and Marand Unit Elite

Abstract

The aim of the present study is to investigate the effect of shareholders’ power on earnings management in listed companies of Tehran Stock Exchange. In addition, the impact of audit quality as a moderating variables on the relationship between shareholders’ power and earnings management has been studied. In this study, using the multivariate regression model for the panel data, the data of 112 firms during 2008 to 2013 were analyzed. The model presented by Dechow et al. (2012) has been used to measure the earnings management, and the auditor industry specialization index has been adopted to measure audit quality. The findings indicated that shareholders’ power have a significant negative effect on the earnings management. In addition to, findings suggested that, audit quality has a significant negative effect on the relationship between shareholders’ power and earnings management. 

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References

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History

  • Receive Date: 21 September 2015
  • Revise Date: 05 March 2016
  • Accept Date: 14 March 2016

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