Managerial Motivations in aggressiveness Financial Reporting According to Cumulative Perspective Theory
Subject Areas : Financial Economics
علی مولایی ایل ذوله
1
,
kaveh parandin
2
1 - -دانشجوی دکتری حسابداری، دانشگاه آزاد اسلامی واحد تهران جنوب تهران،ایران
2 - Faculty member of Payam Noor University, accounting major
Keywords: Managerial Motivations, aggressiveness Financial Reporting, Cumulative Perspective Theory,
Abstract :
Aggressiveness financial reporting as a risk-based managerial behavior occurs when managers use their personal judgments in financial reporting and manipulate the structure of transactions to change financial reporting. On the other hand, perspective theory seeks to explain how people's emotions and psychological preferences affect their decision making. Therefore, the aim of the research is to investigate the effect of managerial motivation in aggressiveness financial reporting according to the cumulative perspective theory. In order to test the research hypotheses, 128 companies listed in Stock Exchange during 2016-2021 were investigated. In this research, correlation and multivariate regression methods with combined data model and generalized least squares estimation method are used.Overall, the findings of this study show that aggressiveness financial reporting follows four patterns of risk attitude, in other words, when the probability of reference profit or the probability of reference loss is high, the probability of aggressiveness financial reporting increases, but if the probability of reference profit is high or The lower the probability of reference losses, the lower the likelihood of aggressiveness financial. Reporting.If the probability of change in profit or loss is small, the manager's attitude towards risk can change direction. In other words, if the probability of profitability increases, the manager reduces his risk-taking slightly instead of changing his attitude from risk-taking to risk-aversion. Therefore, it can be argued that the likelihood of aggressiveness financial reporting can change without changing the manager's attitude towards risk from risk-taking to risk-aversion.
