Investigating the relationship between agency cost and earnings management with emphasis on the mediating role of social responsibility

Subject Areas :

kaveh parandin ¹ , Tayebeh jamshidi ² , Shahriar Porshad ³ , Somayeh Hosseini Aghdaei ⁴

1 - Assistant Professor, Payam Noor University
2 - Assistant. Prof , Accounting Department, Bakhtar Higher Institution Of Education, Ilam,Iran
3 - Master's degree, Business Administration, Payam Noor University
4 - Assistant Professor, Department of Accounting, Payame Noor University, Tehran, Iran,

Received: 2024-01-07 Accepted : 2024-04-15

Keywords: agency cost, profit management, social responsibility,

Abstract :

The main purpose of this research is to identify and determine the relationship between agency cost and profit management with the mediation of social responsibility. The statistical population of this research is all the companies accepted in the Tehran Stock Exchange during the years 2017 to 2022 and 188 companies were selected as a sample. The research method is based on the objective of the applied type, and in terms of the quantitative method, it is of the correlation type. In order to test the hypotheses of the research, it was done with the organizational studies method with the help of Eviews software, version 12. The results of the research showed that there is a significant and positive relationship between agency fees and profit management. There is a negative and inverse relationship between corporate social responsibility and profit management. Corporate social responsibility has a negative and significant moderating role on the relationship between agency cost and profit management. Also, there is a significant negative relationship between corporate social responsibility and agency cost. The results of this research show that there is a positive relationship between corporate social responsibility and profit management, and increasing corporate social responsibility increases profit management. In addition, the adoption and implementation of social responsibility strategies can be abused by managers who pursue their personal interests to carry out non-profit projects. The regulatory role of social responsibility is supported by good management theory. Thus, investment in social responsibility improves fundamental stakeholder relations, including social and employee relations.