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Role of Audit Committees and Board of Directors in Reducing Earning Management of Companies Listed in Tehran Stock Exchange

Author

Listed:
  • Marzieh Khosheghbal

    (MA in Accounting, Qeshm International Branch, Islamic Azad University, Qeshm, Iran)

  • Ali Amiri

    (Department of Accounting, Bandar Abbas Branch, Islamic Azad University, Bandar Abbas, Iran,)

  • Ali Homayoon

    (Faculty member, Bandar Abbas Branch, Islamic Azad University, Bandar Abbas, Iran)

Abstract

The purpose of this study was to examine role of audit committees and board of directors in reducing earning management of companies listed in Tehran Stock Exchange. In this research, audit committees and board of directors were selected as independent variable and earning management as dependent variable. Statistical population of study consisted of all companies listed in Tehran Stock Exchange during 2009-2014 selecting manufacturing companies with available data listed in stock market during 2009-2014 as sample companies. To estimate research models, generalized least squares (GLS) method was employed and to test independency of regression model's error, Durbin Watson test was used. Significance of regression model was examined using F value; t-student value was used to confirm or reject research hypotheses through Eviews Software. Results of research showed a positive relationship between firm size and earning management; while there was not any relationship between board size, independence of board of directors, audit committee and earning management.

Suggested Citation

  • Marzieh Khosheghbal & Ali Amiri & Ali Homayoon, 2017. "Role of Audit Committees and Board of Directors in Reducing Earning Management of Companies Listed in Tehran Stock Exchange," International Journal of Economics and Financial Issues, Econjournals, vol. 7(6), pages 147-153.
    • Handle: RePEc:eco:journ1:2017-06-19
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    More about this item

    Keywords

    Earning Management; Board Size; Firm Size; Independence of Board of Directors; Audit Committee;
    All these keywords.

    JEL classification:

    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • M4 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting

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