Iranian Journal of Accounting, Auditing and Finance in the Islamic Environment

Iranian Journal of Accounting, Auditing and Finance in the Islamic Environment

The Impact of Ownership Structure, Board and Audit Committee Characteristics on Earning Management

Document Type : Original Article

Authors
Arash Arianpoor 1
Maryam Moradi 2
1 Assistant Professor of Accounting, Attar Institute of Higher Education, Mashhad, Iran
2 Master of Auditing, Imam Reza International University
10.22034/aafie.2022.149027
Abstract
The purpose of this study is to investigate the impact of ownership structure, characteristics of board of directors and audit committee on the earnings management of listed companies in the period 2012-2019. Multivariate regression model was used to test the research hypotheses. The empirical findings from the testing of research hypotheses show that institutional ownership, industry expertise, independence, and board effort as well as the independence of the audit committee have an adverse effect on earnings management. In addition, the impact of the Audit Committee's efforts on direct profit management. The results of the present study emphasize the role of institutional owners, board of directors, independent audit committee and its specialty on profit management and reducing opportunistic behaviors of company management. The study outcomes can be useful in accepting companies' role in their impact on society and its individuals by managers and senior decision-makers. This study provides a step towards explaining the findings, enriching the relevant literature, and providing future research options in other countries.
Keywords
Ownership structure
Board of directors characteristics
Audit committee
Earnings management
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  • Receive Date 20 April 2022
  • Revise Date 27 April 2022
  • Accept Date 29 April 2022
  • Publish Date 20 February 2022