نوع مقاله : مقاله پژوهشی
نویسندگان
چکیده
عنوان مقاله [English]
نویسندگان [English]
1- Introduction
Earnings management is an essential issue in accounting and auditing for financial researchers, auditors and analyzers. The phenomenon of cosmetic earnings (loss) and debt management is considered as a kind of deception and important fraudulent activity done by the managers to draw the shareholders’ attention to the initial figures of earnings (loss) and debt. Cosmetic earnings and debt management provides a relatively more suitable perspective for the users than the time when it does not happen. This type of earnings management will mislead the users in their decisions and encourages the fraudulent thinking in the company. Previous studies showed that legal protections including corporate governance may reduce the managers’ desire for arranging the financial statements, considerably.
2- Research Purpose
The goal of this study is surveying the Cosmetic earnings and debt management and the effect of Corporate Governance on them.
3- Methods and Results
To measure the cosmetic upward earnings and downward loss and debt management, Benford’s Law has been applied. The corporate governance system was also measured using a cumulative index and making use of board independence criteria, institutional shareholders, concentration of ownership and the type of auditor. The data were gathered from 145 firms listed on Tehran’s Stock Exchange (TSE) between 2009 and 2019. To examine and compare the actual distribution of profit (loss) and debt statement with the expected Benford’s distribution, the standard Z-test, Chi-square distribution and Cramér’s V-test were utilized. The results indicated that managers arrange the earnings figures significantly upward in order to benefit from the users’ psychological responses; while such a rule is not true about the loss and debt figures and they are not arranged by the managers. Furthermore, the findings of the study show that the company’s corporate governance will not decrease the managers’ power in arranging the earnings (loss) and debt.
کلیدواژهها [English]
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