Accounting report
Mozaffar Jamalianpour
Abstract
The importance and role of Media and NEWS are increased by improvement of Information and Communication Technologies. This article try to find role of medias’ news in corporate earning management strategies. So, I investigate for show impact of media coverage on replacement and trade off between ...
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The importance and role of Media and NEWS are increased by improvement of Information and Communication Technologies. This article try to find role of medias’ news in corporate earning management strategies. So, I investigate for show impact of media coverage on replacement and trade off between Accrual Earning Management (AEM) and Real Earning Management (REM) (Earning Management Strategy). For this purpose, I collect NEWS about listed companies during 2015 until 2020 and used Heckman's Two-Step for measure replacement between AEM and REM. I used Different in different and Feasible Generalized Least Squares (FGLS) methods for hypothesis testing.Results show that earning management strategies are different in reaction of media coverage. Increase of media coverage cause companies decrease AEM but they use REM more than usual in this position. In additional, research findings show that companies with higher media coverage and suspect to earning management try to more change in board of directors. So, results show that media has controlling and pressure effect on companies for earning management’s strategy.
Farshid Kheirallahi; Eshagh Behshoor; Farzad Eivani
Volume 11, Issue 44 , March 2015, , Pages 145-161
Abstract
Decreasing interest conflicts between stockholders and executives is thecorporate governance’s role and this is accentuated when managers perceivemotivations to deviate from the advantage of stockholders. Corporategovernance is likely to diminish profit management while improving theinvestors’ ...
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Decreasing interest conflicts between stockholders and executives is thecorporate governance’s role and this is accentuated when managers perceivemotivations to deviate from the advantage of stockholders. Corporategovernance is likely to diminish profit management while improving theinvestors’ understanding of cash maintenance. This study aims atrecognizing relevance among real profit management and corporategovernance. To measure profit management, Recovery models (2006) andJenni (2010) and for measuring the relevance between cash maintenance andprofit management, modified models of Opler (1999) and Phama and Fringe(1998) have been deployed in this study. Percentage of non-obligatedmembers of executive board (executive board independence) has beenutilized as the substantial feature of corporate governance. As for testing thehypotheses, multi-variable linear regression model and integratedgeneralized least squares method were used. Considering the limitationsimposed in selection, statistical sampling of the study includes 90 acceptedcompanies in Tehran Stock Exchange that have undergone research between2008 and 2012. The findings indicate that there is a meaningful positiverelevance between real profit management and cash maintenance. Investorsdecrease cash maintenance in companies with high real profit managementand compared to businesses with strong corporate governance, weaker onespossess less evaluations of cash maintenance among those which performprofit management in its high levels.
