Assessing convergence and divergence between accounting information quality criteria: Stakeholder Management Theory Test

Document Type : Original Article

Authors
Abdullah Hoseinzade 1
mahmoud mousavi shiri 2
zohreh hajiha 3
hashem nikoomaram 4
1 Ph.D Graduated, Department of Accounting, Science and Research Branch, Islamic Azad University, Tehran, Iran.
2 Associate Professor, Department of Accounting, Payame Noor University, Tehran, Iran.
3 Associate Professor, Department of Accounting, East Tehran Branch, Islamic Azad University, Tehran, Iran.
4 Professor, Department of Accounting, Science and Research Branch, Islamic Azad University, Tehran, Iran
Abstract
Despite the importance of the quality of accounting information in economic decisions and extensive research in this area in the last two decades, the lack of a codified theoretical framework for analyzing and interpreting the quality and multiplicity of criteria has confused stakeholders. The main purpose of this study is to investigate how the relationship between these criteria changes by considering the management of stakeholder interests as an effective factor in the governance process. This research is of applied type and has been done with correlation approach. The statistical sample of the study includes 163 companies listed on the Tehran Stock Exchange in the period 2009 to 2017. The collected data were analyzed by combined data and least squares regression. Findings show that there is a positive and significant relationship between stakeholder interest management and criteria related to the quality characteristics of accounting information. Also, no significant relationship was observed between stakeholder interest management and criteria related to external groups. In addition, stakeholder management changed the relationship between accounting information quality criteria in the form of convergence and divergence. Therefore, while legislators should pay more attention to the criteria related to the characteristics of accounting information in order to make regulations related to quality improvement from the perspective of stakeholders, stakeholders should make at least one criterion related to the characteristics of information and one to make their economic decisions. Use criteria related to external groups.
Keywords
Accounting Information Quality
Stakeholder Management
Convergence
Divergence
  • اشرفی،جواد؛ رهنمای رودپشتی، فریدون و بنی مهد، بهمن(1398)، "نظریه های مسئولیت پذیری اجتماعی شرکت ها"، دانش حسابداری و حسابرسی مدیریت، شماره 31، صص1-14.
  • باقری، محمود؛ صادقیان ندوشن، مهرداد،(1395)، "تئوری ذی نفعان در حقوق شرکت ها" ،فصلنامه علمی تخصصی قضاوت، دوره16، شماره87، صص27-58.
  • حسین زاده، عبداله؛ حاجیها، زهره؛ موسوی شیری، سیدمحمود و نیکومرام، هاشم(1399)، "بررسی همگرایی معیارهای انعکاسی و ترکیبی کیفیت سود در واکنش به مولفه های انگیزشی مدیران" ، حسابداری مدیریت، دوره13، شماره45، صص91-106.
  • حصار زاده،رضا؛ حسین اعتمادی؛ عادل آذر و علی رحمانی، (1395)،  "طراحی مدل کمینه‌سازی عدم اطمینان بر اساس معیارهای کیفیت داده‌های حسابداری"، مطالعات تجربی حسابداری مالی، دوره 13، شماره 50، صص 89-136.
  • کاظمی علوم،مهدی؛ مصطفی عبدی؛ محسن ختن لو و مژده جعفری، (1397)، "بررسی همگرایی مدل‌های اندازه‌گیری کیفیت سود"، پژوهش‌های تجربی حسابداری، دوره 8، شماره 29، صص 69-82.
  • گل محمدی شورکی،مجتبی؛ پورحیدری،امید و بهارمقدم، مهدی، (1396)،"بررسی تاثیر مدیریت ذی نفعان بر سود تقسیمی و ارزش شرکت"، بررسی های حسابداری و حسابرسی، دوره 24، شماره 3، صص371-394.
  • Adwan,Sami, Alhaj-Ismail, Alaa , Girardone, Claudia, (2020). Journal of International Accounting, Auditing and Taxation, 1-33.
  • Beyer, Anne , Guttman, Ilan, Marinovic, Iva´n, (2019). Earnings Management and Earnings Quality: Theory and Evidence. The Accounting Review, 94, 77–101.
  • Bhattacharya, U., Daouk, H., Welker, M., (2003). The world price of earnings opacity. The Accounting Review 78, 641– 678.
  • Cheng,Agnes, Li, Shuo, Zhang, Eliza Xia, (2020). Operating cash flow opacity and stock price crash risk. J. Account. Public Policy.
  • Chih, H.-L., Shen, C.-H., Kang. F.C. (2008) Corporate Social Responsibility, Investor Protection, and Earnings Management: Some International Evidence, Journal of Business Ethics,Vol. 79:197-198.
  • Choi, B. B., Lee, D., Park. Y. (2013) Corporate Social Responsibility, Corporate Governance and Earnings Quality: Evidence from Korea, Corporate Governance: An International Review, Vol. 21 (5):447-467.
  • Choi, J., Wang, H (2009) Stakeholder Relations And The Persistence Of Corporate Financial Performance, Strategic Management Journal, 30, 895-907.
  • Clarkson, M.B.E.(1995) A Stakeholder Framework for Analyzing and Evaluating Corporate Social Performance, Academy of Management Review, 20, 92-117.
  • Crane, A., Graham, C., & Himick, D. (2015). Financializing Stakeholder Claims. Journal of Management Studies, 52,7,878-906.
  • Crutchley, C.E., Jensen, M.R.H. and Marshall, B.B. (2007), ‘‘Climate for scandal: corporate environments that contribute to accounting fraud’’, The Financial Review, Vol. 42 No. 1, pp. 53-73.
  • Dechow, P. Ge, W & Schrand, C. (2010). Understanding earnings quality: Are view of the proxies, their determinants and their consequences. Journal of Accounting and Economics, 345.
  • Dechow, P., Ge, W., & Schrand, C. (2010). Understanding earnings quality: Are view of the proxies, their determinants and their consequences. Journal of Accounting and Economics , 345.
  • Dechow, P. , Ge, W. and Schrand, C. (2009) . Understanding Earnings Qquality: A Review of the Proxies, Their Determinants and Their Consequences, Working Paper, Haas School of Business, University of California, Berkeley.
  • Dechow, P. R. Sloan and A. Sweeney. (1995). Detecting earnings management. The Accounting Review 70, 193-225.
  • Donaldson, T., & Preston, L. E. (1995). The stakeholder theory of the corporation: Concepts, evidence, and importance. Academy of Management Review, 20, 65-91.
  • Easton, G, Harris, T. (1991). Earnings as an Explanatory Variable for Returns. Journal of Accounting Research, 29 .19-36.
  • Ehsan, Sadaf, Nurunnabi, Mohammad, Tahir, Samya,  Hashmi, Maaida. (2020). Wileyonlinelibrary.com/journal/basr.
  • Ewert, R. and A. Wagenhofer (2015), ‘Economic Relations Among Earnings Quality Measures’, ABACUS, Vol. 51, No. 3.311-355.
  • Fan, Q., & Zhang, X. j. (2012). Accounting Conservatism, Aggregation, and Information Quality. jornal of accounting research , 1-33.
  • Freeman, R. E. and R. A. Philips: 2002, ‘Stakeholder Theory: A Libertarian Defence’, Business Ethics Quarterly 12(3), 331–349.
  • Freeman, R. E. and R. A. Philips (2002). ‘Stakeholder Theory: A Libertarian Defence’, Business Ethics Quarterly 12(3), 331–349.
  • Feijoo, B., Romero, S., Ruiz, S., 2014. Effect of stakeholders’ pressure on transparency of sustainability reports within the GRI framework. J. Bus. Ethics 122 (1), 53e63.
  • Freeman, R. (2010). Strategic management: A approach. (reprint of original 1984 ed.). Cambridge, U.K.: Cambridge University Press.
  • Freeman, R.E. and Reed, D.L. (1983), ‘‘Stockholders and stakeholders: a new perspective on corporate governance’’, California Management Review, Vol. 25 No. 3, pp. 88-106.
  • Greenwood, M., Kamoche, K., 2013. Social accounting as stakeholder knowledge appropriation. J. Manag. Govern. 17 (3), 723e743.
  • Harrison, J.S., Boss, D.A. & Philips, A. (2010). Managing For Stakeholders, Stakeholder Utility Functions, and Competitive Advantage. Strategic Management Journal, 31(1), 58-74.
  • IASB (2010). The Conceptual Framework for Financial Reporting. A21-A51.
  • Jones, J. J. (2007). Earnings Management During Import Relief Investigations. Journal of Accounting Research, 29(2), 193–22.
  • Kaur, A., Lodhia, S., 2018. Stakeholder engagement in sustainability accounting and reporting. Accounting. Auditing & Accountability Journal 31 (1), 338e368.
  • Kim, Y., Park, M. S., Wier, B. (2012) Is Earnings Quality Associated with Corporate Social Responsibility, The Accounting Review, Vol. 87 (3):761-796.
  • Kim, KA. and Limpaphayom, P. (1998). “Taxes and Firm Size in Pacific Basin Emerging Economies”. Journal of International Accounting Auditing and Taxation, 7 (1): 47-63.
  • Laplume, A. O., Sonpar, K., & Litz, R. A. (2008). Stakeholder theory: Reviewing a theory that moves us. Journal of Management, 34(6), 1152e1189.
  • Loy, Thomas(2016). “Stakeholder influence on earnings management: Ethical considerations and potential avenues”. Journal of Corporate Ownership and Control, Vol. 13
  • March, J., G. & Simon, H. A. (1958). Organizations. New York: Wiley.
  • Mattingly, J. E., Harrast, S. A. & Olsen, L. (2009). Governance implications of the effects of stakeholder management on financial reporting, 3(9), 271-282.
  • McNichols, M. ( 2002). Discussion of the quality of accruals and earnings: The role of accrual estimation errors. The Accounting Review 77(s-1): 61-69.
  • Prior, D., Surroca, J., & Tribó, J. A. (2008). Are socially responsible managers really ethical? Exploring relationship between earnings management and corporate social responsibility. corporate Governance: An International Review, 16(3), 160–177.
  • Schipper, K., Vincent, L., (2003). Earnings quality. Accounting Horizons 17, 235–250.
  • Sowden, Rod; Office, Cabinet (August 30, 2011). Managing successful programmes. Stationery Office. p. 59.
  • Zhang, y, Perols, J, Robinson ,D, Smith ,T (2018), “ Earnings Management Strategies to Maintain a String of Meeting or Beating Analyst Expectations”. Advances in Accounting, Forthcoming, PP:1-39.