Narcissism and Tendency to Earnings Management

Document Type : Research Paper

Authors

1 Ph.D. Student of Accounting, Science and Research Branch, Islamic Azad University, Tehran, Iran

2 Associate Professor of Accounting, Karaj Branch, Islamic Azad University, Karaj, Iran

3 Associate Professor of Accounting, Science and Research Branch, Islamic Azad University, Tehran, Iran

4 Professor of Accounting, Science and Research Branch, Islamic Azad University, Tehran, Iran

Abstract

Earning management has ever been one of the accounting challenges that many researchers have tried hard to tackle. However, duo to the challenge continuity, it seems necessary to consider more other approaches to resolve it. This study considers earnings management through a behavioral approach and investigates the relation between narcissism, as an individual attribute, and tendency to opportunistic earnings management. The sampling is random and the sample consists of 209 people working in accounting profession. This study is a descriptive research and data is collected through questionnaires. The hypothesis is tested through the regression method. Results show a significant positive relation between narcissism and tendency to opportunistic earnings management. In other words, individuals with higher narcissism behavior have more tendency to manage earnings. These kind of people for their sense of entitlement, power and respectfulness, may take some unethical actions like earnings management. Therefore, in appointment of financial managers and accountants, personal characteristics and attributes should be considered along with professional skills and expertise. Moreover, efficient auditing and management systems in an organization would help modifying their negative attributes. 

Keywords

References

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History

  • Receive Date: 15 October 2016
  • Revise Date: 12 September 2017
  • Accept Date: 17 May 2017

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