Journal of Accounting and Management Vision

Journal of Accounting and Management Vision

The impact of climate risk on earnings management

Document Type : Original Article

Authors
Master of Industrial Management - Production and Operations, Tabriz Branch, Islamic Azad University, Tabriz, Iran.
Abstract
The main objective of this study is to investigate the impact of climate risk on earnings management among companies listed on the Tehran Stock Exchange. In this regard, the relationship between climate risk components, including drought crisis and agricultural product fluctuations, and two types of earnings management, including discretionary accrual-based earnings management and real earnings management, has been analyzed. The statistical population of the study consists of all companies active in the agricultural sector of the Tehran Stock Exchange during the six-year period from 1397 to 1402. Using the systematic exclusion sampling method, 26 companies were selected, which include a total of 156 company-year observations. From the perspective of the purpose, this study is classified as applied research and is classified as a descriptive-post-event study in terms of data collection method. To test the hypotheses, multivariate regression models were used using EViews version 8 software and panel data method (fixed effects and mixed model). The results show that climate risk has a significant impact on corporate earnings management in the period under study.
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