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Impact of managers’ sticky expectations on earnings management: The moderator role of non-executive managers

    Authors

    • ABBAS ALI DARYAEI 1
    • Yasin Fattahi 2

    1 accounting, social science, IKIU

    2 M.A Student of Accounting

,

Document Type : Research Paper

10.30479/jfak.2019.9768.2350
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Abstract

Objective: The managers’ sticky expectations is due to opportunistic behaviors. Thus, the purpose of this paper is to explore relationship between managers’ sticky expectations and earning management with regard to non-executive managers.
Methods: The analysis is based on pooling data and multiple regression from 131 firms in duration 2012-2018.
Results: show that there is a significant relationship between the managers’ sticky expectations and earnings management. Also, non-executive managers effect on relationship between managers’ sticky expectations and earnings management.
Conclusion: Managers employed the earnings management owing to their expected goals. Based on agency theory, non-executive managers have considered as a controlling and monitoring mechanism. This role can leads to modifying of relationship between managers’ sticky expectations and earnings management.
Contribution: This study tries to fill the theoretical gap between board structure and earnings management literature in Iranian companies. In this regard, due to the potential conflicts between managers and other stakeholders, it is expected that the next enhancement of managers’ monitoring role by increasing the number of non-executive managers may moderate the earnings management.

Keywords

  • Agency theory
  • Earnings management
  • Managers’ sticky expectations and Non‌-‌executive managers
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References
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Financial Accounting Knowledge
Volume 6, Issue 2 - Serial Number 21
September 2019
Pages 113-133
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How to cite
  • RIS
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  • Article View: 1,231
  • PDF Download: 1,154

APA

DARYAEI, A. A. and Fattahi, Y. (2019). Impact of managers’ sticky expectations on earnings management: The moderator role of non-executive managers. Financial Accounting Knowledge, 6(2), 113-133. doi: 10.30479/jfak.2019.9768.2350

MLA

DARYAEI, A. A. , and Fattahi, Y. . "Impact of managers’ sticky expectations on earnings management: The moderator role of non-executive managers", Financial Accounting Knowledge, 6, 2, 2019, 113-133. doi: 10.30479/jfak.2019.9768.2350

HARVARD

DARYAEI, A. A., Fattahi, Y. (2019). 'Impact of managers’ sticky expectations on earnings management: The moderator role of non-executive managers', Financial Accounting Knowledge, 6(2), pp. 113-133. doi: 10.30479/jfak.2019.9768.2350

CHICAGO

A. A. DARYAEI and Y. Fattahi, "Impact of managers’ sticky expectations on earnings management: The moderator role of non-executive managers," Financial Accounting Knowledge, 6 2 (2019): 113-133, doi: 10.30479/jfak.2019.9768.2350

VANCOUVER

DARYAEI, A. A., Fattahi, Y. Impact of managers’ sticky expectations on earnings management: The moderator role of non-executive managers. Financial Accounting Knowledge, 2019; 6(2): 113-133. doi: 10.30479/jfak.2019.9768.2350

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