The Impact of Transactions with Affiliated Individuals on the Manipulation of Actual Activities, with Emphasis on the Role of Regulatory Corporate Governance
Subject Areas :Ali mohammadi 1 , Ali Nikouei 2 , Sardar Esmaeilzadeh 3
1 - Assistant professor, Department of Accounting, zanjan Branch, Islamic Azad University, zanjan, Iran
2 - PhD student, Department of Accounting, zanjan Branch, Islamic Azad University, zanjan, Iran
3 - PhD student, Department of Accounting, zanjan Branch, Islamic Azad University, zanjan, Iran
Keywords: Corporate Governance, : Affiliated Individuals Transactions, Real Earnings Management, Board of Directors, Structure Ownership,
Abstract :
The purpose of this research is to investigate the impact of transactions with affiliated individuals on the manipulation of real activities, as well as to examine the moderating role of corporate governance mechanisms on the relationship between transactions with affiliated individuals and real earnings management. In line with the research objectives, a sample of 130 companies from among the listed companies in Tehran Stock Exchange during the period of 2007 to 2016 was selected and analyzed through regression models using panel data. In general, the findings show that transactions with affiliated individuals have a positive and significant impact on the management of real earnings, in other words, with the increase of transactions with affiliated individuals, real earnings management also increases. The results also show that the independence of the board of directors, institutional ownership and management ownership weaken the positive relationship between transactions with affiliated individuals and real earnings management. Regarding the effect of the size of board of directors and the CEO’s duality on the relationship between transactions with affiliated Individuals and real earnings management, there were no statistically significant results.
مرجع‌ها
اسماعیل‌زاده مقری، علی؛ علیجان‌زاده قرا، صدیقه؛ هادیان، سید امین. 1395. «تأثیر معاملات با اشخاص وابسته بر سود سهام نقدی»، پژوهش‌های حسابداری مالی و حسابرسی 31، 72-57.
اُستا، سهراب. (1390). بررسی رابطه بین ساختار مالکیت و مدیریت سود. پژوهش های حسابداری مالی، 3(2)، 93-106.
ایزدی‌نیا، ناصر؛ ربیعی، حامد؛ حمیدیان، نرگس. 1392. «بررسی رابطة بین اهرم مالی و مدیریت سود واقعی شرکت‌های پذیرفته‌شده در بورس اوراق بهادار تهران»، مجلة پیشرفت‌های حسابداری دانشگاه شیراز، دورة پنجم، شمارة اول، ص 54-33.
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سرلک، نرگس و اکبری، مینا. 1392. «رابطة بین معاملات با اشخاص وابسته و مدیریت سود»، بررسی‌های حسابداری و حسابرسی 4، 92-77.
قزلسفلی، یاسر و احمدی موسی‌آباد ایوب. 1394. «بررسی اثر اهرم مالی بر مدیریت سود واقعی شرکت‌های پذیرفته‌شده در بورس اوراق بهادار تهران»، اولین کنفرانس بین‌المللی، مدیریت و نوآوری در کسب و کار.
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Dittmar, A. and Mahrt-Smith, J. (2007), “Corporate governance and the value of cash holdings”, Journal of Financial Economics, Vol. 83 No. 3, pp. 599-634.
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Harford, J., Mansi, S.A. and Maxwell, W.F. (2008), “Corporate governance and firm cash holdings in the US”, Journal of Financial Economics, Vol. 87 No. 3, pp. 535-555.
Healy, P. & Wahlen, J. 1999. “A Review of the Earnings Management Literature and Its Implications for Standard Setting”, Accounting Horizons 13(4).
Huang, Z. 2003. Form Left Hand to Right Hand, Where Is the Benefit? Related Party Transactions: Good Fortune? Misfortune? (in Chinese). http://finance.tom.com/ 3229 39923-5221952/3299/ html.
Jaggi, B. and Gul, F.A. (1999), “An analysis of joint effects of investment opportunity set, free cash flows and size on corporate debt policy”, Review of Quantitative Finance and Accounting, Vol. 12 No. 4, pp. 371-381.
Limanto.g, Herusetya. A, “The Association between Related Party Transactions and Real Earnings Management: Internal Governance Mechanism as Moderating Variables” The 17th Annual Conference of the Asian Academic Accounting Association (2016 FourA Conference). doi.org/10.1051/shsconf/20173404008. SHS Web Conf. Volume 34, 2017
. Mishkin, S. (1983). A Rational Expectations Approach to MacroEconometrics: Testing Policy Effectiveness and Efficient Market Models. Chicago, University of Chicago Press.
Rahman, A.F. and Mohd-Saleh, N. (2008), “The effect of free cash flow agency problem on the value relevance of earnings and book value”, Journal of Financial Reporting and Accounting, Vol. 6 No. 1, pp. 75-90.
Roychowdhury, S. 2006. “Earnings Management through Real Activities Manipulation”, Journal of Accounting and Economics 42(3), 335-370.
Richardson, S, (2006),"Ver-Investment of Free Cash Flow", Review of Accounting Studies, Vol. 11, PP. 159-89
Ujah, N. & Brusa, J. 2014. “Earnings Management, Financial Leverage, and Cash Flow Volatility: An Analysis by Industry”, Journal of Business and Economics 5(3), 338-348.
Yeejin, Jang & Kailey(Kyung Yun), Lee. 2017. “Taking a Long View: Investor Trading Horizon and Earnings Management Strategy”, Paper available at SSRN: http://ssrn.com/abstract.
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مرجع‌ها
اسماعیل‌زاده مقری، علی؛ علیجان‌زاده قرا، صدیقه؛ هادیان، سید امین. 1395. «تأثیر معاملات با اشخاص وابسته بر سود سهام نقدی»، پژوهش‌های حسابداری مالی و حسابرسی 31، 72-57.
اُستا، سهراب. (1390). بررسی رابطه بین ساختار مالکیت و مدیریت سود. پژوهش های حسابداری مالی، 3(2)، 93-106.
ایزدی‌نیا، ناصر؛ ربیعی، حامد؛ حمیدیان، نرگس. 1392. «بررسی رابطة بین اهرم مالی و مدیریت سود واقعی شرکت‌های پذیرفته‌شده در بورس اوراق بهادار تهران»، مجلة پیشرفت‌های حسابداری دانشگاه شیراز، دورة پنجم، شمارة اول، ص 54-33.
شمس زاده، باقر، افلاطونی، عباس، نیکبخت، نادر. 1395. «ارزیابی توان بازار سرمایه در تشخیص مدیریت سود واقعی و مدیریت سود حسابداری». فصلنامه حسابداری مالی. 8 (32) :38-58
دارابی، رویا و داوودخانی، محمود. 1394. «تأثیر معاملات با اشخاص وابسته بر ارزش شرکت»، پژوهش‌های حسابداری مالی و حسابرسی 28، 152-131.
سرلک، نرگس و اکبری، مینا. 1392. «رابطة بین معاملات با اشخاص وابسته و مدیریت سود»، بررسی‌های حسابداری و حسابرسی 4، 92-77.
قزلسفلی، یاسر و احمدی موسی‌آباد ایوب. 1394. «بررسی اثر اهرم مالی بر مدیریت سود واقعی شرکت‌های پذیرفته‌شده در بورس اوراق بهادار تهران»، اولین کنفرانس بین‌المللی، مدیریت و نوآوری در کسب و کار.
مرادی، مهدی و پرنده، الهام و مرندی، زکیه. 1396. «بررسی ارتباط افق سرمایه گذاری سهامداران نهادی و محتوای اطلاعاتی سودهای تقسیمی غیر منتظره». مهندسی مالی و مدیریت اوراق بهادار، 8، 33، 207-227.
Bukit, R.B. and Iskandar, T.M. (2009), “Surplus free cash flow, earnings management and audit committee”, International Journal of Economics and Management, Vol. 3 No. 1, pp. 204-223.
Cao, Z. 2003. Defeinition, Examination and the Way to Deal with Related Party Transactions between Listed Companies(in Chinese), http://fzj.sz.gov.cn/tqfz/tq5221.5i.asp.
Chen, Y.R. and Chuang, W.T. (2009), “Alignment or entrenchment? Corporate governance and cash holdings in growing firms”, Journal of Business Research, Vol. 62 No. 11, pp. 1200-1206
Corlacia, A. & Tudor, A. 2011. “Related Party Transaction Overiew”, Annales Universitais Apulensis Series Oeconomica 13(2), 248-241
Chung, R.; Firth, M. And J. Kim (2005). “Earnings management, surplus cash flow and external monitoring.” Journal of business research, Vol. 58, pp. 766-776.
Dittmar, A. and Mahrt-Smith, J. (2007), “Corporate governance and the value of cash holdings”, Journal of Financial Economics, Vol. 83 No. 3, pp. 599-634.
Easterwood, C. 1997. “Takeovers and Incentives for Earnings Management: An Empirical Analysis”, Journal of Applied Business Research 14(1), 29-47.
Ewert, R. & Wagenhofer, A. 2005, “Economic Effects of Tightening Accounting Standards to Restrict Earnings Management”, Accounting Review 80(3), 181-195.
Gordon, E. A. & Henry, E. 2005. “Realted Party Transactions and Earnings Management”, Working Paper, Rutgers University and University of Miami.
Gul, F A & Tsui, S L (2001), ‘Free cash flow, debt monitoring, and audit pricing: Further evidence on the role of director equity ownership’, Auditing: A Journal of Practice & Theory, vol. 20, no. 2, pp71-84.
Harford, J., Mansi, S.A. and Maxwell, W.F. (2008), “Corporate governance and firm cash holdings in the US”, Journal of Financial Economics, Vol. 87 No. 3, pp. 535-555.
Healy, P. & Wahlen, J. 1999. “A Review of the Earnings Management Literature and Its Implications for Standard Setting”, Accounting Horizons 13(4).
Huang, Z. 2003. Form Left Hand to Right Hand, Where Is the Benefit? Related Party Transactions: Good Fortune? Misfortune? (in Chinese). http://finance.tom.com/ 3229 39923-5221952/3299/ html.
Jaggi, B. and Gul, F.A. (1999), “An analysis of joint effects of investment opportunity set, free cash flows and size on corporate debt policy”, Review of Quantitative Finance and Accounting, Vol. 12 No. 4, pp. 371-381.
Limanto.g, Herusetya. A, “The Association between Related Party Transactions and Real Earnings Management: Internal Governance Mechanism as Moderating Variables” The 17th Annual Conference of the Asian Academic Accounting Association (2016 FourA Conference). doi.org/10.1051/shsconf/20173404008. SHS Web Conf. Volume 34, 2017
. Mishkin, S. (1983). A Rational Expectations Approach to MacroEconometrics: Testing Policy Effectiveness and Efficient Market Models. Chicago, University of Chicago Press.
Rahman, A.F. and Mohd-Saleh, N. (2008), “The effect of free cash flow agency problem on the value relevance of earnings and book value”, Journal of Financial Reporting and Accounting, Vol. 6 No. 1, pp. 75-90.
Roychowdhury, S. 2006. “Earnings Management through Real Activities Manipulation”, Journal of Accounting and Economics 42(3), 335-370.
Richardson, S, (2006),"Ver-Investment of Free Cash Flow", Review of Accounting Studies, Vol. 11, PP. 159-89
Ujah, N. & Brusa, J. 2014. “Earnings Management, Financial Leverage, and Cash Flow Volatility: An Analysis by Industry”, Journal of Business and Economics 5(3), 338-348.
Yeejin, Jang & Kailey(Kyung Yun), Lee. 2017. “Taking a Long View: Investor Trading Horizon and Earnings Management Strategy”, Paper available at SSRN: http://ssrn.com/abstract.