The relationship between management attributes and accounting comparability

Abstract

Purpose This study aims to concern about the relationship between management managerial attributes (management entrenchment, narcissism and overconfidence of the chief executive officer, board effort and real and accrual earnings management) and comparability of financial statements listed firms on the Tehran Stock Exchange. In other words, this paper aims to answer the question that “whether managerial attributes contribute significantly to the comparability of financial statements or not”. Design/methodology/approach The multivariate regression model is used for hypothesis testing. The hypotheses were examined using a sample of 768 listed observations on the Tehran Stock Exchange during 2012–2017 and by using from the multivariate regression pattern based on panel data techniques and the random-effects model. Findings The obtained results show a significant and negative relationship between management entrenchment, real and accrual earnings management, comparability and the relationship between management narcissism, overconfidence and board effort and comparability of financial statements is positive and significant. Originality/value As the present study is the pioneer study on such topics in the emerging markets, it provides valuable information concerning the intrinsic and acquired features of the management for users, analysts and legal institutions with a considerable impact on the comparability of financial statements. Moreover, this study’s results contribute significantly to the development of science and knowledge in this field and fill the gap in the literature.

Residual audit fee and real income smoothing: evidence from quoted non-financial firms in Nigeria

“…From a different perspective, Salehi et al (2022) using empirical data from Tehran finds that real earnings management was negatively associated with audit report readability. Moreover, Seifzadeh et al (2022) find that real earnings management was significantly associated with financial statement comparability. AJAR 2.1.3 Residual audit fee and real operating cash flow smoothing.…”

العلاقة بین فاعلیة هیكل الرقابة الداخلیة وقابلیة القوائم المالیة للمقارنة فی ظل الأثر المعدل لخصائص مجلس الإدارة: دراسة تطبیقیة على الشركات المقیدة بالبورصة المصریة

“…) ‫ب‬ ‫تةتب‬ ‫اس‬ ‫تؽباثار‬ ‫تابم‬ ‫تدتباثعاث‬ ‫تابيث‬ ‫ثل‬ (Kubickova and Jindrichovska, 2016;Ramdany, 2015 Arisandi, et al, Dashtbayaz, et al, 2019;Sitorus, et al,2019;Widyaningsih, 2016;Hu,et al,2021 Hu,et al,2021;Barth,et al, (Hu.et al,2021;Sitorus,et al,2019;Rashedi and Dargahi, 2019 (Krishnan,et al,2020;Dashtbayaz,et al,2019;Doyle,et al,2007 (Seifzadeh,et al,2022;Qawazeh,et al,2021;Krishnan,et al,2020 (Kewo and ;Ramdany,2015;Rubino andVitolla,2014Arisandi,et al,2022;Hu,et…”

The Effect of Management Characteristics on Audit Report Readability

“…Salehi et al (2020a) observe a negative and significant relationship between accrual-based earnings management and family and nonfamily firms' reputation. Seifzadeh et al (2021) declare a significant relationship between real and accrual-based earnings management and financial statement comparability. Moardi et al (2019) perceive that opportunistic earnings management is negatively and significantly associated with future cash flows and shows no significant relationship between accrual-based earnings management and future cash flows in the pharmaceutical industry.…”

“…Moreover, their study results show that there is also a positive relationship between board independence and human capital, and the relationship between audit committee size and human capital is significant and negative. Seifzadeh et al (2021) posit that managerial entrenchment is negatively associated and significantly with financial statement comparability.…”