Analyzing the behavior of the pattern of factors affecting earnings management in organizations with the fraud diamond model using an mixed-method
Subject Areas :
Ehsan Saadati
1
,
Shohreh Yazdani
2
*
,
Mohammadhamed Khanmohammadi
3
,
Davoud Gorjizadeh
4
1 - Department of Accounting, Damavand Branch, Islamic Azad University, Damavand, Iran.
2 - Department of Accounting, Damavand Branch, Islamic Azad University, Damavand, Iran.
3 - گروه حسابداری، واحد دماوند، دانشگاه آزاد اسلامی، دماوند، ایران.
4 - Department of Accounting, Firoozkooh Branch, Islamic Azad University, Firoozkooh , Iran
Keywords: Earnings management, fraud diamond model, fraud triangle model, information asymmetry.,
Abstract :
Objective: The present study is based on analyzing the behavior of the pattern of factors affecting earnings management in organizations with the fraud diamond model, and the interwoven method was used to reach the factors affecting earnings management and measure it with the fraud diamond model.
Methodology: First, the effective components were conducted through field interviews with 21 experts and experts from academia and organizations. In the second stage, a Likert-scale questionnaire was prepared for quantification and after sending the questionnaire (package) to 400 people from the target groups, 333 items were received. The structural equation modeling method with the partial least squares approach of Smart PLS software was used to test the research questions.
Findings: Issues related to owners and shareholders, weaknesses in the accounting system, internal and external issues, as well as the characteristics and motivations of managers are among the most important factors in the occurrence of earnings management. It was also shown that there was a significant relationship between the weakness in the accounting system and the aspects of ability and pressure. On the other hand, there was a significant relationship between issues related to owners and shareholders and the aspects of ability, seemingly rational justification and pressure, and there was also a significant relationship between the characteristics and motivation of managers and the ability side. However, there was no significant relationship between any of the five factors affecting the occurrence of earnings management and the opportunity side.
knowledge contribution: In the present study, an attempt was made to present a new perspective on earnings management that is carried out in organizations. This perspective is directly derived from the experiences and subjective data of academic experts and those working in organizations.
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