The Moderating Role of Family Ownership in the Relationship between Life Cycle and Real Earning Management in Tehran Stock Exchange Listed Companies

Document Type : Research Paper

Authors

1 FACULTY MEMBER OF TEHRAN UNIVERSITY

2 Department of Accounting, Faculty of Accounting and Financial Sciences, College of Management, University of Tehran, Tehran, Iran.

10.22051/jera.2024.46135.3199

Abstract

The main purpose of this research is to investigate the effect of the company's position in the life cycle on real earning management, emphasizing the moderating role of family ownership. The method of research is applied in terms of purpose with a causal nature which takes a post-experimental method. Data source is the information included in the financial statements of the Tehran Stock Exchange listed companies. The time frame of research includes eight consecutive years from 2014 to 2021. The statistical sample embraces 141 TSE-listed companies. The final analysis of data was done in Eviews and SPSS software. Firstly, the entire sample is divided into two groups of companies with family ownership and without family ownership. Then, the effect of the life cycle on earning management variables is tested using multivariate regression analysis in both samples, independently. Finally, the effect coefficients obtained in two samples are compared with each other by two-sample t-test (paired comparison). The obtained results show that there is a significant relationship between the life cycle stages of companies and earning management through sales management, production cost management and investment management. Also, the earnings management strategies used in the life cycle of family-owned firms are different from others. Based on the findings of this research, companies without family ownership use production cost management and sales management in the stages of introduction and maturity, respectively, and in the final stages of life (decline), they put earning management using investment management into practice. While family-owned companies do not use profit management in the early stages (introduction and growth), and in the maturity stages, they manage real earnings by using sales management.

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References

منابع
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History

  • Receive Date: 20 January 2024
  • Revise Date: 23 April 2024
  • Accept Date: 25 April 2024

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