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Analysis of Earnings Quality in the Board Relations Network

Document Type : Research Paper

Authors

1 Assistant Professor of Accounting , Yazd University, Yazd, Iran.

2 Ph.D, Department of Accounting, Tehran University, Tehran, Iran

3 M.A. Student in Accounting,Yazd University, Yazd, Iran.

Abstract

This study examines earnings quality in the relations network of the board of directors of companies in the Iranian stock market in the period 2011 to 2020. This study has a quantitative approach that is post-event in terms of implementation. Furthermore, it is based on graphic techniques on graph theory. Network analysis and regression analysis were used to conduct research tests. Findings showed that in the communication network of companies, some of them are in a better position and have more access and effectiveness. Better location can lead to easier access to information and resources faster. Also, the results of testing the hypotheses showed that there is no significant relationship between the betweenness centrality, and earnings quality. But there is a significant negative relationship between the degree centrality and earnings quality and a significant positive relationship between the closeness centrality, and the earnings quality. In other words, it can be said that the position in the structure of relationships can somehow affect earnings quality of companies.

Keywords

Main Subjects

References
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Empirical Studies in Financial Accounting
Volume 19, Issue 73
April 2022
Pages 151-175
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History
  • Receive Date: 18 December 2021
  • Revise Date: 27 February 2022
  • Accept Date: 10 April 2022
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