Implementation of Direct Subsidy System and Earnings-Based Accrual Management in Political Economy Theory (Empirical Evidence: Tehran Stock Exchange)

Document Type : Original Article

Authors
ali mosayyebi behrooz 1
farzaneh hajihassani 2
hamidreza vakilifard 3
1 Ph.D. Student of Accounting, College of Management and Economics, Science and Research Branch, Islamic Azad University, Tehran, Iran.
2 Assistant Professor, College of Management and Economics, Science and Research Branch, Islamic Azad University, Tehran, Iran.
3 Associate Professor, College of Management and Economics, Science and Research Branch, Islamic Azad University, Tehran, Iran.
Abstract
Implementation of Direct Subsidy System and Earnings-Based Accrual Management in Political Economy Theory (Empirical Evidence: Tehran Stock Exchange)
The present study investigates the effect of establishing a direct subsidy system on accrual-based earnings management within the framework of political economy theory. The statistical population of the present study is Tehran Stock Exchange, which 173 companies were selected as the sample of the study from 2006 to 2019 period. In order to perform statistical analysis in the present study multiple linear regression method with panel-effects method was used. Findings from the analysis of research data show that accruals based earnings management has increased in the period after the establishment of direct subsidy system. Based on the findings of the present study, it can be concluded that subsidizing targeting plan has reduced the profitability of companies and increased accrual-based earnings management through cost pressures on producers.
Keywords
Direct subsidy system, targeting subsidies, accrual based earnings management.
Keywords
Direct subsidy system
targeting subsidies
accrual based earnings management
  • ابراهیمی کردلر،علی و سید عزیز سیدی (1387)،" نقش حسابرسان مستقل در کاهش اقلام تعهدی اختیاری"،بررسی های حسابداری و حسابرسی،شماره 15، صص 16-3.
  • اعتمادی،حسین و عادل آذر(1389)،" بررسی نقش تخصص حسابرس در صنعت بر مدیریت واقعی سود و عملکرد عملیاتی آتی "،شماره 1، صص 28-9.
  • انصاری،عبدالمهدی و علیرضا خودرشیدی (1393)،" بررسی تاثیر مدیریت سود مبتنی بر اقلام تعهدی و مدیریت واقعی سود بر نقدشوندگی سهام و ارزش شرکت"،دانش حسابداری و حسابرسی مدیریت،شماره 11،صص53-41.
  • ایزدی نیا، ناصر و مهدی میرزایی(1393)،" تاثیر ارزشگذاری بالای سهام بر رابطه بین کیفیت حسابرسی و اقلام تعهدی اختیاری"، فصلنامه مطالعات تجربی حسابداری مالی، شماره 45، صص 96-73.
  • خانی، عبدالله و کریم ایمانی(1392)،" بررسی رابطه بین تخصص حسابرس در صنعت و اجتناب مالیاتی شرکتهای فعال در بورس اوراق بهادار تهران"، دانش حسابرسی، شماره 51، صص 25-1.
  • کرمی،غلامرضا و آمنه بذر افشان(1390)،" بررسی رابطه بین دوره تصدی حسابرس و مدیریت سود"، مجله دانش حسابداری، شماره 4، صص 82-65.
  • مشایخی،بیتا و ساسان مهرانی(1384)،"نقش اقلام تعهدی اختیاری در مدیریت سود شرکتهای پذیرفته شده در بورس اوراق بهادار تهران"، بررسی های حسابداری و حسابرسی، شماره 42،صص 74-61.
  • محمدرضایی˛فخر الدین(1397)˛" بررسی رابطه میان رکود تورمی با مدیریت سود واقعی و مدیریت سود مبتنی بر اقلام تعهدی"˛ فصلنامه حسابداری مدیریت˛ شماره 36.
  • Ahmed, K. & Nurul Huqe,M.(2017). Audit Quality, Earnings Management, and Cost of Equity Capital: Evidence from India. International Journal of Auditing,177-189.
  • Chen, C. Y., Lin, C. J. and Lin, Y. C. (2004). "Audit partner tenure, audit firm tenure and discretionary accruals; does long auditor tenure impair earning quality?" Working paper, Hong Kong University of Science and Technology.
  • Dechow, M. P. Hutton, Kim, J. & G. Sloan, (2011), "Detecting Earnings Management: A New Approach", workshop participants at the University of Arizona, Brigham Young University, the University of Houston, the University of Texas at Austin, the University of Washington and UCLA.
  • Fama, E. F. and K. R. French (1998) “Taxes, Financing Decisions and Firm Value” Journal of Finance, 53, 819-843.
  • Glasser, W. (1998). Choice theory: A new psychology of personal freedom. New York, NY: Harper.
  • Healy, P. M. And J. M. Wahlen, (1999), "A review of earnings management literature and its implications for standard setting", Accounting Horizons, Vol. 13 (4)(December), PP. 355-363.
  • Heckman,J(1979). SAMPLE SELECTION BIAS AS A SPECIFICATION ERROR, Econometrica, Vol. 47, No. 1.
  • Inaam, Z.G (2012). " Audit Quality and Earnings Management in the Tunisian Context". International Journal of Accounting and Financial Reporting. ISSN 2162-3082 2012, Vol. 2, No. 2.
  • Jones, J., (1991), "Earnings management during import relief investigations", Journal of Accounting Research, Vol. 29. PP. 93-228.
  • Kasznik, R., (1999), "On the association between voluntary disclosure and earnings management", Journal of Accounting Research, Vol. 37, PP. 57−81.
  • Kothari, S. P., A. J. Leone, C. E. Wasley, (2005), "Performance matched discretionary accruals measures", Journal ofaccounting and economics, Vol. 39, PP. 163-197.
  • MohammadRezaei,F. & Mohd-Saleh,N. (2016). The Effects of Audit Market Liberalisation and Auditor Type on Audit Opinions: The Iranian Experience International Journal of Auditing, 87–100.
  • Myers, J. N., Myers, L. A. and Omer, C. T. (2003). "Exploring the Term of the Auditor-client relationship and the quality of Earnings: A case for Mandatory Auditor rotation?" The Accounting Review ,Vol. 78, Issue 3, pp. 779-799.
  • Scott, William, (2008), "Financial Accounting Theory" , Printice Hall, PP. 402-431.
  • Trueman, B. & Titman, S., 1998. An explanation for accounting income smoothing. Journal of Accounting Research, 26 (1), 127-139.
  • Watts, Ross L. and Jerold L. Zimmerman. (1990). "Positive accounting theory: A ten year perspective". The Accounting Review, 65,1 (January): 131-156