The aim of this study was to investigate the role of Benford's law in the relationship between accounting conservatism, institutional investors and earnings management in listed companies on the Stock Exchange in Tehran. In this study, it is tried to evaluate the effect of accounting conservatism and institutional ownership on the earnings manipulation in the business entity and test the interaction of these two criteria. In order to obtain earnings management, first four digits of net profit of companies for the period of 2005 to 2014 has been tested using Benford's law and this has been done with the use of different groups of sample companies with varying degrees of conservatism and institutional ownership. Khan and Watts (2009) model has also been used to calculate accounting conservatism and the central index of median has been used to determine high and low levels of accounting conservatism and institutional ownership. The statistical method used to test conservatism is multivariate regression using generalized least squares estimation method (EGLS) and chi-square test has been used for each of the hypotheses. The results that are obtained based on Benford's Law and Chi-square test indicate that when accounting conservatism is high and institutional investors' criterion is low or vice versa at the same time, these two criteria can reduce earning management in the business unit.
کلید واژگان :accounting conservatism, earnings management, institutional investors, Benford's Law, Tehran Stock Exchange
ارزش ریالی : 300000 ریال
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