Innate and discretionary accruals quality and corporate governance: A case study of Tehran Stock Exchange

Panahian, H.; Ghodrati, H.; Nazari, M.

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Management Science Letters

ISSN 1923-9343 (Online) - ISSN 1923-9335 (Print) Quarterly Publication Volume 2 Issue 8 pp. 3023-3030 , 2012

Innate and discretionary accruals quality and corporate governance: A case study of Tehran Stock Exchange Pages 3023-3030 Download PDF

Authors: Hossein Panahian, Hassan Ghodrati, Majid Nazari

DOI: 10.5267/j.msl.2012.09.005

Keywords: Corporate governance, Innate and discretionary accruals quality, Tehran Stock Exchange, Transparency

Abstract: In this paper, we present an empirical study to find the relationship between discretionary accruals quality as well as innate accruals quality and portion of non-executive board of directors, concentration of ownership ratio and board size in Tehran Stock Exchange. The survey selects 118 qualified stocks from this exchange and using a random technique chooses 42 firms. The study implements two linear regression techniques to estimate the first part of the information and then using structural equation modeling examines six hypotheses. Based on the results of this survey we can conclude that an increase on non-executive members positively influences on discretionary accruals quality and negatively influences innate accruals quality. Concentration of ownership ratio positively influences on discretionary accruals quality and negatively impacts on innate accruals quality. Finally, size of board of directors negatively impacts discretionary accruals quality and positively influences on innate accruals quality.

How to cite this paper

 Panahian, H., Ghodrati, H & Nazari, M. (2012). Innate and discretionary accruals quality and corporate governance: A case study of Tehran Stock Exchange.Management Science Letters , 2(8), 3023-3030.

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