The effect of the quality of corporate governance and conflicting financial incentives on the quality of fraudulent financial reporting

Document Type : Original Article

Authors
LIDA sheikhzadabkenar 1
Omid Pourheidari 2
Amirhossein Taebi Noghondari 3
1 PhD student, accounting department, Kerman branch, Islamic Azad University, Kerman, Iran
2 Professor, Department of Accounting, Shahid Bahnerkerman University, Kerman, Iran.
3 Assistant Professor, Department of Accounting, Kerman Branch, Islamic Azad University, Kerman, Iran
10.22034/jmaak.2024.77542.4252
Abstract
Different contradictory factors and motivations in organizations can play an important role in providing fraudulent financial reports to achieve personal benefits by deceiving external users. Therefore, identifying these factors is an important step to inform external users. Organization that is in line with making optimal investments and decisions. Thus, this research seeks the impact of the quality of corporate governance and conflicting financial incentives on the quality of fraudulent financial reporting. The current study is a descriptive survey application. The statistical population of this research consists of the employees and investment managers of the companies admitted to the Tehran Stock Exchange, which was determined by using Cochran's formula to the number of 384 people. This research used a questionnaire and random sampling method to select the sample size. The research results indicate that the quality of corporate governance negatively and significantly affects the quality of fraudulent financial reporting. It was also concluded that conflicting financial incentives positively and significantly affect the quality of fraudulent financial reporting.
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