Journal of Accounting and Management Vision

Journal of Accounting and Management Vision

The effectiveness of the audit committee in the effect of information asymmetry on the actual profit management of companies listed on the Tehran Stock Exchange

Document Type : Original Article

Authors
nemat olah naghdi por birgani
mojtaba motalebian
farsan
Abstract
In an environment where information is less than management, shareholders cannot fully see the company's performance and future prospects. In such an environment, the manager can use his authority to manage profits by manipulating real activities. The purpose of this study is to investigate the effect of information asymmetry on real profit management with respect to the moderating role of the effectiveness of the audit committee. The statistical population of the present study is the companies listed on the Tehran Stock Exchange, which was selected as a statistical sample by the systematic elimination of 101 companies in the period 1392 to 1397. In order to analyze the data, regression method with panel data structure was used. The results of the first hypothesis showed that information asymmetry has a positive effect on real profit management. Other research findings also indicate that despite the effective audit committee, the severity of the impact of information asymmetry on actual profit management is reduced. According to the results of testing the hypotheses, it can be stated that the management of real profit by managers in conditions of information asymmetry despite the supervision of the audit committee due to the information approach, opportunistic behavior and concluding efficient contracts.
Keywords
Information asymmetry
profit management
real profit management
effectiveness of the audit committee