Unsystematic Risk and Internal Control Quality Impact on the Earning Quality by using Volatility Profits Index in Tehran Stock Exchange

Heidarpoor, Farzaneh; Shahrivar, Farhad Sheikhi

doi:10.17485/ijst/2015/v8i11/71800

Cited by 4 publications

(3 citation statements)

References 3 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…To our knowledge, existing literature have reached a consensus on the impact of IC on EP. These studies generally revolve around the aspects of internal control deficiency correction (Heidarpoor & Shahrivar, 2015) and disclosure of internal control audit opinions (Doyle et al, 2007), finding that EP can be positively influenced by effective corporate internal control. Conversely, the existence of internal control deficiencies may lead to increased behaviours of earnings management and real earnings management, thus causing more earnings noises (Ashbaugh-Skaife et al, 2009) and abnormal earnings and weakening EP.…”

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

Independent director interlocks: effects and boundary on the earnings persistence of the firm

Liao

Chen

2020

Economic Research-Ekonomska Istraživanja

View full text Add to dashboard Cite

This article first analyses the impact of independent director interlocks on firms' earnings persistence in China, an emerging market from 2007 to 2017. Using the independent director network data and the unique internal control index, this article investigates the association between independent director interlocks and earnings persistence, and the roles of firms' outside director interlocks and firms' inside internal control playing in earnings persistence. Our results reveal a significant and positive association between independent director interlocks and earnings persistence, and in the context, there is a clear mediation effect of internal control in relationship of independent director interlocks and earnings persistence. Further analyses on the scope and stability of independent director interlocks effects show that independent director interlocks can both improve accrual earnings persistence and cash flow persistence. Meanwhile, the effect of independent director interlocks differentiates under the influence of firms' strategy, only playing a significant role in defensive ones. Moreover, we find that independent director interlocks can relieve the 'accrual anomalies' in the securities market. Our results are robust to the various measure of earnings persistence and alternative methodological techniques.

show abstract

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

Independent director interlocks: effects and boundary on the earnings persistence of the firm

Liao

Chen

2020

Economic Research-Ekonomska Istraživanja

View full text Add to dashboard Cite

show abstract

“…Until now, the research focuses more on financial issues, specifically in the stock market, price, or return. For example, in the context of earning quality determining factor, more researchers discuss corporate governance mechanism, unsystematic risk, type of ownership or source of investment, managerial ability, 21st Century Approaches to Management and Accounting Research and corporate social responsibility [8][9][10][11][12][13][14][15]. The impact of board diligence and audit committee attributes is negative.…”

Section: Introductionmentioning

confidence: 99%

Accounting Quality and Its Challenges in 21^st Century

Sumiyana¹,

Hendrian²,

Effendi³

et al. 2021

Accounting and Finance Innovations

View full text Add to dashboard Cite

This paper describes current research to drive future research challenges in accounting quality. The definition of accounting quality is mainly varying depending on the objective that the study pointed. Previous research revealed that many proxies describe the accounting quality but most of them from the financial perspective. Furthermore, this paper tries to expose this research issue in the behavioural approach and drive future research in the mixed method. It concludes that the behavioural issues can be a research model, triggering future research challenges in accounting quality. The authors support these triggers from the perspectives of political hegemony, bureaucracy ratcheting, cognitive distortion, and international accounting standard. Finally, we infer and simultaneously predict that accounting quality would broaden its concepts and lasting impression in the 21st century.

show abstract

“…In this regard, we argue that RM coupled with other organisational factors could improve the quality of internal controls, which enables organisations to withstand competition, improves earning quality (Heidarpoor and Shahrivar, 2015), provides protection against excessive risk-taking behaviour (Länsiluoto et al , 2016) and fraud occurrence. We further argue that ICQ will depend on the effectiveness of RM practices, where top management support (TMS) and the scope of IAA become necessary in such a relationship.…”

Section: Introductionmentioning

confidence: 99%

Conceptualising the interaction among organisational factors towards internal control quality

Alazzabi

Mustafa

Issa

2020

JFC

View full text Add to dashboard Cite

Purpose This paper provides a theoretical foundation and conceptual framework to explain the interactions among risk management (RM), top management support (TMS), and internal audit activities (IAA) to achieve internal control quality (ICQ). Design/methodology/approach A review of the extant literature in RM, auditing and management control is conducted to develop and establish theoretical relationships. Findings In this work, interconnectedness among organisational factors is discussed by drawing on contingency theory to provide the theoretical logic and support the conceptual framework. Research limitations/implications Although this work illustrates the significance of the moderation effect of TMS and the mediation effect of IAA to link RM processes with the quality of internal controls, limitations exist, as the study is conceptual and lacks empirical evidence. The paper emphasises education and training on RM and internal audit to address emerging issues and arising challenges in RM and ICQ. Originality/value The paper extends the existing literature in the area of ICQ, which is discussed extensively in developed contexts. However, studies on ICQ in emerging economics, specifically the Middle East and North Africa region, which suffers from high levels of corruption, and asset misappropriation cases are limited. Hence, this work is important because it addresses under-researched issues in relation to ICQ in an attempt to develop a conceptual framework from the available and most effective organisational factors to attain better ICQ.

show abstract

Unsystematic Risk and Internal Control Quality Impact on the Earning Quality by using Volatility Profits Index in Tehran Stock Exchange

Cited by 4 publications

References 3 publications

Independent director interlocks: effects and boundary on the earnings persistence of the firm

Independent director interlocks: effects and boundary on the earnings persistence of the firm

Accounting Quality and Its Challenges in 21^st Century

Conceptualising the interaction among organisational factors towards internal control quality

Contact Info

Product

Resources

About

Unsystematic Risk and Internal Control Quality Impact on the Earning Quality by using Volatility Profits Index in Tehran Stock Exchange

Cited by 4 publications

References 3 publications

Independent director interlocks: effects and boundary on the earnings persistence of the firm

Independent director interlocks: effects and boundary on the earnings persistence of the firm

Accounting Quality and Its Challenges in 21st Century

Conceptualising the interaction among organisational factors towards internal control quality

Contact Info

Product

Resources

About

Accounting Quality and Its Challenges in 21^st Century