Investigation the Effect of Board Characteristics and External Auditing Quality on Accruals Based Earnings Management

Subject Areas : Renewable Energy

Maryam  Sangin Ghasr ¹ (M.A., Department of Financial Management, Damavand Branch, Islamic Azad University, Damavand, Iran)
Alireza  Heidarzadeh Hanzaei ² (Assistant Professor, Department of Financial Management, North Tehran Branch, Islamic Azad University, Tehran, Iran (Correspondence Officer))

Received: 2019-01-28 Accepted : 2019-08-01 Published : 2020-02-20

Keywords: Auditing Quality, Board Characteristics, Accrual Based Earning Management,

Abstract :

The purpose of this study was to investigate the impact of the Board of Directors and the quality of the independent auditor on accrual-based profit management in Tehran Stock Exchange (TSE) companies. In this research, earnings management based on accruals items as dependent variables and ownership concentration, management ownership, board size, board independence, CEO duality, and audit quality as independent variables and firm size, capital expenditures, financial leverage, and book value the market value has been studied as control variables. In this study, the sample size was 194 companies. The data of this study were used by the companies listed in Tehran Stock Exchange from the beginning of 1391 to the end of 1396 at the level of the total and at the industry level Is located. In order to test the hypotheses of this research, regression analysis was used at the level of 5% error. According to the results of this study, the final conclusion of this study shows that, based on the combined regression method, the significant effect of audit quality as well as the quality of the board on the management of earnings based on accrual.