The effect of accounting conservatism and earn-ings management on earnings quality

  • Authors

    • Mohammad Delkhosh Islamic Azad University, Bardaskan
    • Mohammad Sadeghi Islamic Azad University, Bardaskan
    2017-11-07
    https://doi.org/10.14419/ijaes.v5i2.8454
  • Conservatism, Accruals, Earnings Management, Earnings Sustainability.

  • Abstract

    The net income has been always one of the important issues that had always been a favorite among financial statement's user, and the quality and management of it have always been the focus of attention of investors and creditors. The purpose of this study is to investigate the role of conservatism and earning management in earning quality. For this purpose, the Givoly and Hayn (2000) index were used as conservative measurement criteria and the modified Jones model (1995) was used as a measure of earning's management measurement, and the Dechow and Dichev (2002) index were used as a measure of the quality of earning (earnings sustainability) of the company. The statistical population of this study is 123 companies that listed on Tehran Stock Exchange between 2009 and 2014. For testing the research hypothesis a multivariate regression analysis was used. The results of the research indicate a significant negative (invert) relation between accounting conservatism and earning's management on the quality of earnings.

  • References

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  • How to Cite

    Delkhosh, M., & Sadeghi, M. (2017). The effect of accounting conservatism and earn-ings management on earnings quality. International Journal of Accounting and Economics Studies, 5(2), 157-162. https://doi.org/10.14419/ijaes.v5i2.8454

    Received date: 2017-10-04

    Accepted date: 2017-10-30

    Published date: 2017-11-07