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Investigating the Impacts of the Level of Voluntary Disclosure on the Accrual-Based Earnings Management and Real Earnings Management of the Companies Listed

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Document Type : Research Paper

Abstract

The purpose of this research is to study the impacts of the level of voluntary disclosure on the accrual-based earnings management and real earnings management. In this paper, the independent variable is the level of voluntary disclosure and Botosan (1997) check list which has been adjusted by kashanipour et al. (2009) was utilized to measure level of voluntary disclosure. The check list consists of 71 indices through six section of background information, the summery of historical results, key non-Financial Statistics, segments information, projected information and management discussion and analysis. Moreover, the dependence variable is earnings management. To determine real earnings management, Roychowdhury Model (2006) and accrual-based earnings management used the Kasznik Model (1999) that modified by Bahar Moghadam and Koohi (2010) have been applied. To test research hypotheses multivariate regression with panel data is utilized. The statistical sample of the research includes 121 firms during the years of 2004 to 2012. The results of analysis the research hypotheses show that there is a negative significant relationship between the level of voluntary disclosure and earnings management. In other words, when the level of voluntary disclosure increase, the real earnings management and accrual-based earnings management will increase.

Keywords

References

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Financial Accounting Knowledge
Volume 2, Issue 3 - Serial Number 3
December 2015
Pages 23-46
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