The effect of organizational culture on earnings quality of firms listed on Tehran Stock Exchange

Subject Areas : Management Accounting

زهرا دیانتی دیلمی ¹ , وحید طیبی ²

1 - نویسنده مسئول
2 - ندارد

Received: 2011-09-23 Accepted : 2012-01-05 Published : 2011-12-22

Keywords: organizational culture, Earnings Quality, Organizational Culture&#x0D, &#x0D, Model,

Abstract :

The results of done researches on earnings quality show that several factors affectthe quality of these items. Among these factors can state cultural and ethical factors,the kind of companies' ownership, the level of law's defense of countries frominvestors, law's pressure, disclosure index and others. So, the purpose of this researchis, surveying organizational culture's dimensions on the earnings quality of the firmslisted on Tehran Stock Exchange. For this purpose, at first the kind of financialmanagers' organizational culture was specified by distribution Cameron andFreeman's organizational culture questionnaire and then the data related to earningsquality was extracted from firms' financial statements.Then, the causal model of affecting culture on earnings quality was presented bygathering data and the structural equation model based on partial- List square (PLS)method. The results of gathered data for 85 firms show that organizational culture ofmanagers (Adhocracy- Market- Hierarchical) has a positive effect on their reportedearnings quality and it explains 43.5% changes of earnings quality.