Investigation the Moderating Role of Corporate Governance on the Relationship between Audit Committee and Real Earnings Management

Subject Areas : Corporate governance

Fatemeh Rahmati baher ¹ , Yaghoub Pourkarim ^{2 *}

1 - MSc. Student, Department of Accounting, Tabriz Branch, Islamic Azad University, Tabriz, Iran.
2 - Assistant Prof, Department of Accounting, Tabriz Branch, Islamic Azad University, Tabriz, Iran.

Received: 2024-08-13 Accepted : 2024-12-24 Published : 2025-01-19

Keywords: Audit Committee, Real Earnings Management, Corporate Governance,

Abstract :

Corporate managers are making an increasing effort to increase their personal interests and achieve a superior position. Nevertheless, companies establish mechanisms to reduce opportunistic behavior and reduce conflict of interest. Therefore, the aim of the present study is to investigation the moderating role of corporate governance on the relationship between the audit committee and real earnings management in companies listed on the Tehran Stock Exchange. In this regard, 120 companies were selected for the period of 2017-2022. The purpose of applied research and its methodology is post-event type. The combined data approach has been used to test the research hypotheses. Eviews statistical software was used to test research hypotheses.The result of the first hypothesis test showed that there is a negative and significant relationship between the audit committee and real earnings management. In fact, the effectiveness of the audit committee can reduce the company's real earnings management. Also, the result of the second hypothesis test showed that with the moderating role of corporate governance between the audit committee I and real earnings management, there is a negative and significant relationship.

References:

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