The Effect of Corporate Supervisory Mechanism on Promotion of Earnings Information Content in Capital Market of Iran
الموضوعات :
Hamed Kargar
1
(Master of Accounting, Payam Noor University)
Bijan Abedini
2
(Associate Professor, faculty member of Hormozgan University, Iran.)
Zahra Kazemian
3
(Chief Auditor of the Tax Administration)
الکلمات المفتاحية: Profit Information Content, Regulatory Mechanism, Quality of Internal Control, Capital Market of Iran.,
ملخص المقالة :
Objectives: The present study aims to examine the impact of a company's regulatory mechanisms on the enhancement of earnings information content in the Iranian capital market.
Design/methodology/approach: A sample of 142 firms listed on the Tehran Stock Exchange from 2013 to 2022 was chosen using a systematic exclusion model. The research hypothesis was then tested through multiple linear regression tests based on panel data. The profit reaction coefficient and the company's supervisory mechanism, as indicated by the owner's internal control criteria, were used to measure the information content of profits.
Results: The study found a direct and significant correlation between the company's supervisory mechanism and the information content of earnings. Improving the quality of the monitoring mechanism led to an increase in the information content of profits.
Innovation: This study offers valuable insights for company managers and stakeholders in the capital market. By effectively utilizing regulatory mechanisms, the level of information content of profits in the market can be enhanced.
Ali Al-Matari1.Y., Sulaiman.A.S.M and Al-Matari.E.M. (2017). Audit Committee Activities and the Internal Control System of Commercial Banks Operating in Yemen. nternational Review of Accounting, Auditing and Taxation, 19, 65-84.
Arabsaleh, M Hamidian, N, Amiri, H (2018). The Role of Accounting Information Uncertainty on Investors' Reaction to Earnings Statement. Experimental studies of financial accounting 15(57).147-170.
Balsam, S. Weqjiang, B. (2012). Eluitg incentives and in Ternal control weaknesses; Novembers 15, No 48., PP.1-34.
Behavior”. Journal of Accounting, Finance and Economics, 3 (1): 1-21.
Cedric, P. Alain, S. Liesbeth B. (2018). Audit committees in dependence and the information content of earnings announcements in western Europe; Journal of Accoanting Literature 41, 29-53.
Cheng, M. , D. Dhaliwal, & Y. Zhang. (2013). Does investment efficiency improve after the disclosure of material weaknesses in internal control over financial reporting? Journal of Accounting and Economics: 56, 128-155
Hajiha, Z, Chenari, H. (2023). The Effect of Accounting Comparability on Financial Reporting Quality with Emphasis on Audit Quality. Judgment and Decision Making in Accounting and Auditing,2(5), 87-106.
Hajiha, Z.; Oradi, J.; Salehabadi, M. (2017) Weaknesses in Internal Controls and Delayed Audit Reporting. Financial Accounting Quarterly, Vol. (9), No. 33, pp. 78-96. (in Persian).
Internal Control of Integrated Framework, Vol. 2, Pouryanasab, Amir; Maham, Keyhan (2012) Audit Organization Publications, Charter of Audit Committee, Publication 135 ,6th Edition, Tehran Stock Exchange Organization.
Juan Mao, Zhongxia (Shelly) Ye(2023) Internal control material weakness disclosure and misstatement duration. Journal of Business Finance& Accounting. Volume50, Issue1-2. Pages 118-151
Karami, Gh (2008) Investigating the Relationship between Institutional Owners and Information Content of Profits. Accounting and Auditing Reviews, Vol. 15, No. 54, pp. 81-100
Khodadadi, V, Farazmand, H, , Tabatabei, F. (2013). The Effect of Timeliness and Conservatism on the Information Content of the Profits of Listed Companies in Tehran Stock Exchange. Experimental accounting research. (3) 3, 75-92.
Li, H. (2015). Managerial Ability and Internal Control Quality: Evidence from China, International Journal of Financial Research: 6 (2) , 54-66.
Li, H. (2015). Managerial Ability and Internal Control Quality: Evidence from China, International Journal of Financial Research: 6 (2) , 54-66.
LING LEI LISIC, L. L., NEAL, T. L., ZHANG, I. X, (2016), “CEO Power, Internal Control Quality, and Audit Committee Effectiveness in Substance Versus in Form”, Contemporary Accounting Research. PP. 1-39.
Nami Basit, M.; Razmi, H. (2020) The Impact of Mandatory Disclosure of Weaknesses of Internal Controls on Investment Decisions of the Company. Perspective of Accounting and Management, Volume (3) F No. (28). pp. 117-132.
Othman, R. Ishak, I.F., Arif, S.M. M. and N. (2014). Influence of audit committee charateris on roluntary ethic CSD disclosure; Procedia – social and Behavioral science, 145, pp. 330-340.
Pástor, L., & Veronesi, P. (2009). Learning in financial markets. Annual
Pástor, L., & Veronesi, P. (2009). Learning in financial markets. Annual
Person, O. S, (2009), “Audit Committee Characteristics and Earlier Voluntary ethics Disclosure among Fraud and No-Fraud Firms”, International Journal of Disclosure and Governance, 6 (4), PP. 284-297.
Petra, S.T. (2007) The Effect of Corporate Governance on The Information Of Earnings. Economics Of Governance, Vol 8. Pp 129-152.
Safari Geraieli, M., Rezaei Pitehnoi, Y., Norouzi, M. (2017) Presenting a model for explaining the effectiveness of audit committee and value content of accounting information. Quarterly Journal of Accounting and Management Audit Knowledge. Volume 6, Issue 24, pp. 1-11.
Safari Graeili, M, Rezai Pitehnoei, Y. (2020). Modeling the Moderating Role of Information Environment on the Relationship between Accounting Comparability and Tax Avoidance. Experimental Accounting Research 10(4), 83-111.
Salehi, M., Mousavi Shiri, S.M. and Ebrahimi Sweizi, M. (2014) Information content of announced and anticipated earnings of each share in explaining abnormal stock returns. Financial Accounting and Audit Research, 21,11-140
Salehi, M., Mousavi Shiri, S.M. and Ebrahimi Sweizi, M. (2014) Information content of announced and anticipated earnings of each share in explaining abnormal stock returns. Financial Accounting and Audit Research, 21,11-140
Sánchez-Ballesta, J. and García-Meca, E. (2007). Ownership Structure, Discretionary Accruals and the Informativeness of Earnings. Corporate Governance, Vol. 15, No.4, pp.677- 691.
Taheri, Z; Banimahd, B; Heidarpour, F., Vakilifard, H. R. (2020) Explanation of behavioral tendencies in fraudulent financial reporting: Testing the theory of behavioral stability psychology, Journal of Knowledge of Accounting and Management Auditing, Vol. 10, No. 37, pp. 129-141.
Vafeas, N. (2000). Board Structure and the Informativeness of Earnings. Journal of Accounting and Public Policy, Vol. 19, pp.139-160.
WanchenZhao(2021)ResearchontheRelationshipbetweenAbnormalAuditFeesofListedCompaniesandtheRiskofStockPriceCrash.https://doi.org/10.1051/e3sconf/202123503022
Warfield T. Wild J. and Wild, K. (1995). Managerial Ownership, Accounting Choices, and Informativeness of Earnings. Journal of Accounting and Economics, Vol. 20, No.1, pp.61–91.
Wilson, G. (2013). “The Effect of Sarbanes-Oxley on Earnings Management
Zhangfan Cao, William Rees, Tatiana Rodionova(2023) Corporate Social Responsibility and Earnings Quality in the Context ofChanging Regulatory Regimes and the Financial Crisis. Revista de Contabilidad Spanish Accounting Review 26 (1) (2023) 124-137.
