The effect of managers' narcissism on earnings quality in companies listed on the Tehran Stock Exchange, Behavior Psychology Theory Test

Document Type : Original Article

Authors
Shahriar Faghekarimi 1
Fereydoun Ohadi 2
Hashem Nikoomaram 3
Ramezanali royaye 4
1 PhD student, Accounting, Faculty of Management and Economics, Science and Research Branch, Islamic Azad University, Tehran, Iran.
2 Assistant Professor, Department of Finance and Accounting, Faculty of Management and Economics, Science and Research Branch, Islamic Azad University, Tehran, Iran
3 Associate Professor, Department of Finance and Accounting, Faculty of Management and Economics, Science and Research Branch, Islamic Azad University, Tehran, Iran.
4 Assistant Professor, Department of Finance and Accounting, Faculty of Management and Economics, Science and Research Branch, Islamic Azad University, Tehran, Iran.
Abstract
According to the theory of behavioral psychology, the inner personality traits of a person can be examined through the external manifestations of his behavior. One of the most important personality traits of a manager that can affect different dimensions of the organization is narcissism. The purpose of this study is to investigate the effect of managers' narcissism on earnings quality in companies listed on the Tehran Stock Exchange. In order to select the research sample, systematic elimination method (screening) and non-random were used and thus 177 companies were selected over a period of 8 years, from 1390 to 1397. The research data were extracted annually from Rahavard Novin 3 software and after performing calculations in EXCEL software to enter the research relationships and hypotheses, they were entered into EVIEWS software. The results of examining the research hypotheses showed that managers' narcissism has a significant effect on various dimensions of profit quality such as stability, predictability, relevance and timeliness of company profits.
Keywords
Narcissism
earning stability
earning predictability
earning relevance
earning timeliness
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