Investigating the Concurrent Relationship between Management Optimism Models and Financial Reporting Quality Emphasizing the moderating role of governance system mechanisms: A structural equation approach

Message:
Article Type:
Research/Original Article (دارای رتبه معتبر)
Abstract:
Purpose

The purpose of this study was to investigate the relationship between management optimism models and financial reporting quality with the moderating role of governance mechanisms using the structural equation approach.

Methods

Financial data and data of this study were extracted from the financial statements of listed companies in Tehran Stock Exchange between 2011-2017. After applying statistical population constraints, 171 companies were selected to test the hypotheses, and PLS software was used to test the research hypotheses.

Findings

The results showed that management optimism has a significant and inverse effect on financial reporting quality. On the other hand, the moderating role of management system shows that as a supervisory arm plays an influential role in negative effects of management optimism on financial reporting quality because management influence system. Significant and positive is the quality of financial reporting.

Conclusion

Managers' personality traits have a significant relationship with financial reporting practices. Corporate Supervisory Arm, which is the corporate governance system, plays a role in adversely affecting management optimism on the quality of financial reporting. Therefore, corporate governance mechanisms can reduce opportunistic behavior, They can improve the quality of financial reporting by reducing agency costs.

Contribution

 For the first time in this research, we have conducted a comprehensive analysis of the optimism criteria of management and the quality management system of financial reporting using a structured analysis approach that examines the impact of hidden criteria.

Language:
Persian
Published:
Journal Of Empirical Reasearch Of Financial Accounting, Volume:7 Issue: 2, 2020
Pages:
155 to 178
https://www.magiran.com/p2173652  
سامانه نویسندگان
  • Kazemi، Hosein
    Corresponding Author (2)
    Kazemi, Hosein
    Assistant Professor Accounting, Ghazvin Branch, Islamic Azad University, قزوین, Iran
  • Rezaei، Farzin
    Author (3)
    Rezaei, Farzin
    Associate Professor accounting, Ghazvin Branch, Islamic Azad University, قزوین, Iran
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