A Survey on the Effect of Monitoring Mechanism of Corporate Governance on Rebating the Earning Management Intensity (in Persian)

Sasan Mehrani (), Daryoush Foroughi (), Hosein Kordtabar () and Amir Rasaiian ()
Additional contact information
Sasan Mehrani: Iran
Daryoush Foroughi: Iran
Hosein Kordtabar: Iran
Amir Rasaiian: Iran

Management and Development Process Quarterly (٠صلنامه ٠رایند مدیریت و توسعه), 2011, vol. 24, issue 2, 51-78

Abstract: This study tries to examine the effect of monitoring mechanism of Corporate Governance to decreasing the Earning Management Intensity. Intensity of earning management behavior is described on the basis of the 'threshold model' through bringing up the reported earnings to thresholds. It consists beating the benchmark (thresholds) and not doing so. Our empirical tests are conducted by regression analysis using data 185 listed firms with fiscal years 1382-1388, and pooling time series and cross-section data. The results of empirical tests indicate that with a=0.01 there is income-increasing earning management behavior both each thresholds. Examining the role of monitoring device of corporate governance in intensity of EM behavior that is tested by logistic regression and U Mann Whitney indicates that monitoring device don’t restrict it. Only when pre-managed earning are below last period’s reported earning outside directors and institutional investors influence the likelihood that reported earnings exceed the thresholds

Keywords: Conservative Earning Management; Aggressive Earning Management; Thresholds; Corporate Governance; Outside Directors; Institutional Investors (search for similar items in EconPapers)
Date: 2011
References: Add references at CitEc
Citations:

Downloads: (external link)
http://jmdp.ir/article-1-554-en.pdf (application/pdf)
http://jmdp.ir/article-1-554-en.html (text/html)
http://jmdp.ir/article-1-554-fa.html (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:auv:jijmdp:v:24:y:2011:i:2:p:51-78

Access Statistics for this article

More articles in Management and Development Process Quarterly (٠صلنامه ٠رایند مدیریت و توسعه) from Institute for Management and Planning studies Contact information at EDIRC.
Bibliographic data for series maintained by Nahid Jebeli ( this e-mail address is bad, please contact ).