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Eranings Increasing or Decreasing Accounting choices: with emphasis on the role of firm size and corporate governance

    Authors

    • Hadiseh Nasiri Alamoti 1
    • Alireza Mehrazeen 2
    • Abolghasem Masih abadi 3
    • Mohammad Heydari 4

    1 Ph.D. Student, Department of Accounting, Neyshabur Branch, Islamic Azad University, Neyshabur, Iran

    2 Assistant Professor, Department of Accounting, Neyshabur Branch, Islamic Azad University, Neyshabur, Iran. )correspondence author)

    3 Assistant Professor, Department of Accounting, Neyshabur Branch, Islamic Azad University, Neyshabur, Iran.

    4 Assistant Professor, Department of Aconomics, Neyshabur Branch, Islamic Azad University, Neyshabur, Iran.

,

Document Type : Research Paper

10.30479/jfak.2024.19653.3150
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Abstract

Purpose: Managers, having a higher level of awareness about the stakeholders, try to make the image of the business unit look favorable. Therefore, they make choices that can have different effects on users' decisions. The aim of the current research is to investigate the role of two factors, company size and corporate governance, on choices that increase or decrease accounting earnings.
Method: The statistical sample includes 180 companies (1440 companies-year) from the manufacturing companies admitted to the Tehran Stock Exchange during the period of 2013 to 2014. The research hypotheses have been tested using panel data and multivariate logistic regression.
Results:The results show that the corporate governance factor as well as the company size factor have an inverse and significant relationship with the choice of increasing or decreasing accounting earnings methods.
 Conclusion: In companies, the accounting earnings is determined by the accrual method and by applying the opinion of the managers.In this regard, managers influence earnings by choosing their methods. There are many choices for managers in the process of preparing financial reports that can increase or decrease the company's earnings.
Contribution: This research can provide a new study platform regarding accounting choices in the sense that it draws the attention of standard-setting institutions to the diversity of accounting methods and the freedom of action of managers in choosing methods.

Keywords

  • Accounting Choices
  • Frim size
  • Corporate Governance
  • Increasing or Decreasing Methods

Main Subjects

  • Financial Accounting
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References
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Financial Accounting Knowledge
Volume 10, Issue 4 - Serial Number 39
January 2024
Pages 81-101
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  • Article View: 309
  • PDF Download: 629

APA

Nasiri Alamoti, H. , Mehrazeen, A. , Masih abadi, A. and Heydari, M. (2023). Eranings Increasing or Decreasing Accounting choices: with emphasis on the role of firm size and corporate governance. Financial Accounting Knowledge, 10(4), 81-101. doi: 10.30479/jfak.2024.19653.3150

MLA

Nasiri Alamoti, H. , , Mehrazeen, A. , , Masih abadi, A. , and Heydari, M. . "Eranings Increasing or Decreasing Accounting choices: with emphasis on the role of firm size and corporate governance", Financial Accounting Knowledge, 10, 4, 2023, 81-101. doi: 10.30479/jfak.2024.19653.3150

HARVARD

Nasiri Alamoti, H., Mehrazeen, A., Masih abadi, A., Heydari, M. (2023). 'Eranings Increasing or Decreasing Accounting choices: with emphasis on the role of firm size and corporate governance', Financial Accounting Knowledge, 10(4), pp. 81-101. doi: 10.30479/jfak.2024.19653.3150

CHICAGO

H. Nasiri Alamoti , A. Mehrazeen , A. Masih abadi and M. Heydari, "Eranings Increasing or Decreasing Accounting choices: with emphasis on the role of firm size and corporate governance," Financial Accounting Knowledge, 10 4 (2023): 81-101, doi: 10.30479/jfak.2024.19653.3150

VANCOUVER

Nasiri Alamoti, H., Mehrazeen, A., Masih abadi, A., Heydari, M. Eranings Increasing or Decreasing Accounting choices: with emphasis on the role of firm size and corporate governance. Financial Accounting Knowledge, 2023; 10(4): 81-101. doi: 10.30479/jfak.2024.19653.3150

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