Journal of Accounting and Management Vision

Journal of Accounting and Management Vision

Investigating the effect of board independence and institutional ownership on the relationship between information asymmetry and earnings management

Document Type : Original Article

Authors
mehdi dindar yazdi 1
arya paryad 1
zahra moradi 2
1 Accounting doctoral student, Damavand Branch, Islamic Azad University, Damavand, Iran.
2 Assistant Professor, Department of Accounting, Damavand Branch, Islamic Azad University, Damavand, Iran.
Abstract
Investors and other users can correctly benefit from the company's profits for investment decisions and forecasting future cash flows and profits when the company's profits are based on the actual financial performance of the company and not on the actions Management's opinion on the use of accounting methods should be reported. Based on this, the aim of this research is to investigate the influence of board independence and institutional ownership on the relationship between information asymmetry and profit management. The current research is applied in terms of purpose and causal research (post-event) in terms of method. The statistical population of the research is the companies admitted to the Tehran Stock Exchange, and using the systematic elimination sampling method, 141 companies were selected in the period between 1395 and 1401. The research hypotheses were tested with the help of multivariate linear regression with Eviuse software. The results show that the ownership of institutional investors and the independence of the board of directors have a significant effect on the relationship between information asymmetry and earnings management.
Keywords
Profit management
information asymmetry
ownership by institutional investors
independence of the board of directors
corporate governance

Subjects