The Impact of Peer Performance on the Bedford's Law and Cosmetic Earnings Management
محورهای موضوعی : Financial Accounting
1 - Department of Finance ,Arak Branch, Islamic Azad University ,Arak, Iran
کلید واژه: Benford’s Law, Cosmetic Earnings Management (CEM) , Peer Performance,
چکیده مقاله :
The present study aimed to assess the impact of peer performance on the Bedford's law and cosmetic earnings management (CEM) by a related party among declining and strong companies. The sample population included all the companies that were involved in Tehran Stock Exchange (TSE) during 2014-2018, and 114 companies were selected using the targeted method. This applied research was performed with a correlational design. Data were acquired from financial statements, balance sheets, and journal of security exchange. Data analysis was initially performed using variance heterogeneity pretests, F-Limer, Hausman, and Jarque-Bera test, and the multivariate regression test was used to confirm or reject the research hypotheses in the EViews software. The results indicated that the impact of peer performance on CEM, cosmetics sales management, and profit management by the related party differed between the declining and strong companies, which is consistent with the theory of agency costs.
The present study aimed to assess the impact of peer performance on the Bedford's law and cosmetic earnings management (CEM) by a related party among declining and strong companies. The sample population included all the companies that were involved in Tehran Stock Exchange (TSE) during 2014-2018, and 114 companies were selected using the targeted method. This applied research was performed with a correlational design. Data were acquired from financial statements, balance sheets, and journal of security exchange. Data analysis was initially performed using variance heterogeneity pretests, F-Limer, Hausman, and Jarque-Bera test, and the multivariate regression test was used to confirm or reject the research hypotheses in the EViews software. The results indicated that the impact of peer performance on CEM, cosmetics sales management, and profit management by the related party differed between the declining and strong companies, which is consistent with the theory of agency costs.
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