The Effect of CEO Power on Fraudulent Financial Reporting Quality

The aim of this study is to investigate the effect of CEO Power on Financial Reporting Quality of listed Companies in Tehran Stock Exchange. These two dimensions Financial Reporting Quality in our tests: Financial Statement Restatement (Included in three forms (Financial Statement Restatement, Restatement increase and Revised downward (and Altman Modified Model. For this purpose one hypotheses are developed and data on the 103 companies in Tehran Stock Exchange for the period of 1390 to 1396 were analyzed. This regression model using panel data with Logit model and tests. The results showed that the concentration CEO Power has significant Negative impact on Financial Reporting Quality ((Financial Statement Restatement, Restatement increase, Revised downward and Altman Modified Model). Therefore, the research results indicate that the Powerful executives have more independence and you have more supervisory roles on the board this reduces the disadvantages of stakeholder rights and reduce the agency costs , and thus reduce agency costs reduce information asymmetry and reduce the opacity in financial and thus reduce earnings management and reporting fraudulent.