Investigation of the Role of Competitors’ Performance in Earning Management
In today's business world, increased competition in business environments led to the opportunities and challenges facing firms and managers. As people usually take into account the reactions of others in their decision making process. Recent researches suggest that corporate financial and operational decisions are influenced by competitors’ policies. It is not unlikely that the good competitors’ performance would drive earning management. This study aimed to investigate the role of competitors’ performance on accrual and actual earnings management. The data of 93 companies listed in Tehran Stock Exchange during the period of 2011 to 2017 are collected and analyzed. The results show that the competitors’ performance has a positive relationship between competitors’ performance and accruals earning management, but has no relationship with real earning management. But based on limited access to resources and the high cost of actual earnings management, competitors’ performance does not have a significant impact on actual earnings management.
- حق عضویت دریافتی صرف حمایت از نشریات عضو و نگهداری، تکمیل و توسعه مگیران میشود.
- پرداخت حق اشتراک و دانلود مقالات اجازه بازنشر آن در سایر رسانههای چاپی و دیجیتال را به کاربر نمیدهد.