The Relationship between Corporate Ownership Structure and Earnings Conservatism (Case study in Tehran Stock Exchange)
Journal Title: International Research Journal of Applied and Basic Sciences - Year 2013, Vol 4, Issue 7
Abstract
This paper examines the relationship between corporate ownership structure and earnings conservatism on non-financial companies that listed in Tehran Stock Exchange from 1999 to 2008. Existing literature shows that ownership structure decreases the incentive to manage earnings. And it is believed that managers have opportunities to manage reported earnings base on their benefits. Therefore, the main purpose of this paper is to analyse whether a firm’s ownership structure exacerbate or alleviate earnings management. The effect of the concentrated owners is adversely affecting the accounting information. Concentrated owners produced less informative earnings to outside users, hence reducing the credibility of the information for outside shareholders. Our finding suggested that company with higher non-tradable shares have higher conservatism. Also our research shows the effects of profitability and company size on earnings conservatism are significant. The result of profitability is consistent to theory, but company size doesn’t support theory, that expected a negative association between company size and earnings conservatism.
Authors and Affiliations
Farhad Arabahmadi*| Faculty Member of Accounting Department of Shahrood University of Technology, Iran, farhad.arabahmadi@gmail.com, Aliasghar Arabahmadi| P.H.D student of Azad University of Ollom Tahghighat, Tehran, Iran, Majid Ameri| Faculty Member of Accounting Department of Shahrood University of Technology, Iran
Keywords
Related Articles
- EP ID EP5544
- DOI -
- Views 258
- Downloads 14
The Inductive Revolution of the Hypocrites’ Analogy in Quran
The application of example to facilitate in this matter is among common methods of education and this method has a long history among all people and nations by using this reasonable method, Holy Quran opened the path of...
Food insecurity in postmenopausal women
Menopause age, an important step in women's life, is affected by environmental and physiological factors. In the other hand, the food insecurity as a major public health problem has physical, social and psychological imp...
Study of relationship between organizational culture, Organizational Commitment and creativity of Physical Education Secretaries in Mazandaran Province
This study examined the relationship between organizational culture, organizational commitment and creativity of Physical Education Teachers province was conducted. The study population consisted of 120 physical educatio...
A Study on the Efficiency of Mellat Bank Superior Branches in the Area of Deposit Mobilization Using DEA in Iran
Human is always encountering with the limitation of production factors, products and services.Therefore he has no choice of optimal use of existing facilities and access to higher quality productions in order to obtain b...
Evaluation Planting Date on Agronomical Traits of Canola (Brassica napus L.)
The production of oil seed in Iran is not high, about 80% of Iran's necessary oil is imported from foreign countries planting dates obviously affect canola yield and yield components. Experiments were conducted at the Ag...