The Right of Auditor's Choice and Accrual-based Earnings Management Based on Glaser's Choice Theory (Empirical Evidence: Tehran Stock Exchange)

Ahmadi Looye, Afshin; Nikoomaram, Hashem; Rahnamay Roodposhti, Fraydoon; Banimahd, Bahman

doi:10.22054/qjma.2019.9954

Document Type : Research Paper

Authors

¹ Ph.D. in Accounting , Islamic Azad University, Science and Research Branch

² Professor of Accounting, Islamic Azad University

³ Associate Professor of Accounting, Islamic Azad University

https://doi.org/10.22054/qjma.2019.9954

Abstract

In the present study, for the first time, we investigate the effect of the right of auditor's choice on the Accruals based Earnings management based on Glaser's choice theory. The findings of the empirical Reviews by the use of OLS regression on a sample of 173 active firms in Tehran Stock Exchange during the period from 2009 to 2018(1730 year-firm) show that accrual based Earnings management for Roach firms is more than unroach firm. The results of this research for the first time show that the process of selecting an auditor in Iran follows an opportunistic approach. Therefore, the findings of this study can help investors and the stock exchange organization of the country in the field of legislation to deal with opportunistic managers, such as access to stock options of the ROARCH Group. In this study, firstly, by studying the theoretical foundations of the publishing of asset-backed securities and other sources of information, such as guidelines issued by the Capital Markets Authority, the International Institutions and International Financial Institutions' Guidelines, the Primary Model The asset back rating was extracted, and then this model was developed for the purpose of obtaining consensus and Delphi Research methodology was subjected to an expert opinion survey and ultimately the final model of asset-backed securities ranking was presented.

Keywords

References

ابراهیمی کردلر، علی و سید عزیز سیدی (1387)،" نقش حسابرسان مستقل در کاهش اقلام تعهدی اختیاری"، بررسی های حسابداری و حسابرسی، شماره 15، صص 16-3.

اعتمادی، حسین و عادل آذر(1389)،" بررسی نقش تخصص حسابرس در صنعت بر مدیریت واقعی سود و عملکرد عملیاتی آتی"، شماره 1، صص 28-9.

انصاری، عبدالمهدی و علیرضا خودرشیدی (1393)،" بررسی تاثیر مدیریت سود مبتنی بر اقلام تعهدی و مدیریت واقعی سود بر نقدشوندگی سهام و ارزش شرکت"، دانش حسابداری و حسابرسی مدیریت، شماره 11، صص53-41.

ایزدی نیا، ناصر و مهدی میرزایی(1393)،" تاثیر ارزشگذاری بالای سهام بر رابطه بین کیفیت حسابرسی و اقلام تعهدی اختیاری"، فصلنامه مطالعات تجربی حسابداری مالی، شماره 45، صص 96-73.

خانی، عبدالله و کریم ایمانی(1392)،" بررسی رابطه بین تخصص حسابرس در صنعت و اجتناب مالیاتی شرکتهای فعال در بورس اوراق بهادار تهران"، دانش حسابرسی، شماره 51، صص 25-1.

کرمی،غلامرضا و آمنه بذر افشان(1390)،" بررسی رابطه بین دوره تصدی حسابرس و مدیریت سود"، مجله دانش حسابداری، شماره 4، صص 82-65.

مشایخی، بیتا‌وساسان‌ مهرانی(1384)،"نقش اقلام تعهدی اختیاری در مدیریت سود شرکتهای پذیرفته شده در بورس اوراق بهادار تهران"، بررسی های حسابداری و حسابرسی، شماره 42،صص 74-61.

ملاایمنی، وحید و محمد مرفوع (1393)،"رابطه بین کیفیت افشای اطلاعات و تاخیر در زمان صدور گزارش حسابرسی"، فصلنامه مطالعات تجربی حسابداری مالی، شماره 45، صص 80-59.

ودیعی،محمد حسین و فرهاد عظیمی فر(1391)،"ارزشگذاری بالای حقوق صاحبان سهام و ارتباط آن با اقلام تعهدی اختیاری"، پیشرفتهای حسابداری دانشگاه شیراز، شماره63، صص 203-179.

Ahmed, K. & Nurul Huqe,M.(2017). Audit Quality, Earnings Management, and Cost of Equity Capital: Evidence from India. International Journal of Auditing,177-189.

Chen, C. Y., Lin, C. J. and Lin, Y. C. (2004). "Audit partner tenure, audit firm tenure and discretionary accruals; does long auditor tenure impair earning quality?" Working paper, Hong Kong University of Science and Technology.

Dechow, M. P. Hutton, Kim, J. & G. Sloan, (2011), "Detecting Earnings Management: A New Approach", workshop participants at the University of Arizona, Brigham Young University, the University of Houston, the University of Texas at Austin, the University of Washington and UCLA.

Fama, E. F. and K. R. French (1998) “Taxes, Financing Decisions and Firm Value” Journal of Finance, 53, 819-843.

Glasser, W. (1998). Choice theory: A new psychology of personal freedom. New York, NY: Harper.

Healy, P. M. And J. M. Wahlen, (1999), "A review of earnings management literature and its implications for standard setting", Accounting Horizons, Vol. 13 (4)(December), PP. 355-363.

Heckman,J(1979). SAMPLE SELECTION BIAS AS A SPECIFICATION ERROR, Econometrica, Vol. 47, No. 1.

Inaam, Z.G (2012). " Audit Quality and Earnings Management in the Tunisian Context". International Journal of Accounting and Financial Reporting. ISSN 2162-3082 2012, Vol. 2, No. 2.

Jones, J., (1991), "Earnings management during import relief investigations", Journal of Accounting Research, Vol. 29. PP. 93-228.

Kasznik, R., (1999), "On the association between voluntary disclosure and earnings management", Journal of Accounting Research, Vol. 37, PP. 57−81.

Kothari, S. P., A. J. Leone, C. E. Wasley, (2005), "Performance matched discretionary accruals measures", Journal ofaccounting and economics, Vol. 39, PP. 163-197.

MohammadRezaei,F. & Mohd-Saleh,N. (2016). The Effects of Audit Market Liberalisation and Auditor Type on Audit Opinions: The Iranian Experience International Journal of Auditing, 87–100.

Myers, J. N., Myers, L. A. and Omer, C. T. (2003). "Exploring the Term of the Auditor-client relationship and the quality of Earnings: A case for Mandatory Auditor rotation?" The Accounting Review ,Vol. 78, Issue 3, pp. 779-799.

Scott, William, (2008), "Financial Accounting Theory" , Printice Hall, PP. 402-431.

Trueman, B. & Titman, S., 1998. An explanation for accounting income smoothing. Journal of Accounting Research, 26 (1), 127-139.

Watts, Ross L. and Jerold L. Zimmerman. (1990). "Positive accounting theory: A ten year perspective". The Accounting Review, 65,1 (January): 131-156.

Empirical Studies in Financial Accounting

The Right of Auditor's Choice and Accrual-based Earnings Management Based on Glaser's Choice Theory (Empirical Evidence: Tehran Stock Exchange)

References

References

Volume 15, Issue 60 - Serial Number 60
January 2019
Pages 103-123

The Right of Auditor's Choice and Accrual-based Earnings Management Based on Glaser's Choice Theory (Empirical Evidence: Tehran Stock Exchange)

References

References

Volume 15, Issue 60 - Serial Number 60January 2019Pages 103-123

Volume 15, Issue 60 - Serial Number 60
January 2019
Pages 103-123