The Impact of Disclosure Quality on the Various Earnings Management

• Main Authors: Ahmad Khodamipour, Ali Reza Khorshidi, Ali Shirzad
• Format: Article
• Language: fas
• Published: University of Tehran 2014-02-01
• Series: بررسی‌های حسابداری و حسابرسی
• Subjects: Accrual-based Earnings Management; Aggregate Level of Earnings Management; Disclosure quality; Information asymmetry; Real Earnings Management
• Online Access: https://acctgrev.ut.ac.ir/article_36585_beb87cd28413f9ef4d2f98ec796621ce.pdf
• ISSN: 2645-8020; 2645-8039

Users of financial information are always looking forquality financial information, because Disclosure of such informationreduces the information asymmetry between company managementand investors. Due to information asymmetry between managers andother stakeholders, according to agency theory we expect thatManagers manipulate earnings. For this purpose, in this study theeffect of the quality level of disclosure on different methods ofearnings management will be assessed. In this study, to assess thequality level of disclosure the modified criterion transparency anddisclosure based on Standard and Poor institution were used. Resultsof research using methods of multivariate regression and panel dataindicate a negative and significant relationship between the level ofdisclosure quality and accrual earnings management and real earnings.Furthermore, results using logit regressions indicate a negative andsignificant relationship between Aggregate level of EarningsManagement and the quality level of disclosure quality.