The Effect of the Five Components of Auditors' Personality on Earnings Management
Subject Areas :
Zahra
Karimi
1
(PhD Student in Accounting, Islamic Azad University, Tonekabon, Iran)
ahmad
Yaghoobnezhad
2
(Department of Accounting, Faculty of Economic and Accounting, Central Tehran Branch, Islamic Azad University, Tehran, Iran. Corresponding Author.)
Mahmud
Samadi Largani
3
(Assistant prof, Department of Accounting, Faculty of Accounting, Tonekabon Branch, Islamic Azad University, Tonekabon, Iran)
Mohammad Reza
Pourali
4
(Department of Accounting, Faculty of Accounting, Chaloos Branch, Islamic Azad University, Chaloos, Iran)
Keywords: Earnings Management, Five-factor Neo, Keywords: Personality Dimensions of Auditors,
Abstract :
AbstractPsychological traits have a significant effect on auditors' perception of ethics, the unethical behavior of earnings management harms their credibility by showing the financial status of companies unreal.The audit report is the result of the assurance process for the financial statements, which can be influenced by the auditors' personality traits. This article has investigated the effect of auditors' personality dimensions on earnings management. Data related to the variable of personality dimensions using the test of five main personality components, including extroversion , neuroticism, openness, agreeableness and conscientiousness has been measured through the five-factor questionnaire of Neo McCree & Costa. Adjusted Jones model has been used to measure earnings management variable. The statistical population of the study consisted of the auditors (directors/partners) in the trusted audit agencies of the stocks market, besides the listed companies on the stock exchange which were audited by the said audit agencies. The information of the financial statements of these companies for 1397 has been cross-sectionally examined. The findings show that the personality dimensions of neuroticism, openness and agreeableness do not have a significant effect on earnings management. conscientious auditors are the best type of auditors to reduce earnings management and extroverted auditors increase earnings management.
فهرست منابع
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management, Int. J. Behavioural Accounting and Finance, Vol. 3, pp.163-187