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Opportunistic Earnings Management, an Ethical Deviation in Financial Reporting and the Role of Managers' Tacit Knowledge in It
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Abbas Alizadeh1   , Asgar Pakmaram2 , Saeed Jabarzadeh Kangarloui3 , Jamal Bahri Sales3 |
1- Ph.D. Student, Dept. of Accounting, Urmia Branch, Islamic Azad University, Urmia, Iran
2- Dept. of Accounting, Bonab Branch, Islamic Azad University, Bonab, Iran. , pakmaram@bonabiau.ac.ir
3- Dept. of Accounting, Urmia Branch, Islamic Azad University, Urmia, Iran |
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Abstract: (644 Views) |
Background: Profit management occurs when managers use their personal judgments in financial reporting and manipulate the structure of transactions to change financial reporting. This goal is either to mislead some of the shareholders regarding the economic performance of the company, or to influence the results of contracts whose conclusion depends on achieving a certain profit. Therefore, the current research has paid special attention to these ethical deviations in financial reporting and investigated the role of implicit knowledge of managers in efficient and opportunistic profit management.
Method: The current study was applied and was among descriptive-correlational studies. The statistical population of this research was high-level, middle-level managers and operational managers of the investigated companies, from which 76 people were selected using a targeted and accessible method. A standard questionnaire was used to collect data. Finally, structural equation modeling method and smart-pls statistical software version 3.2.7 were used for data analysis.
Results: The results of the research showed that implicit management knowledge has a significant effect on effective profit management. Also, implicit knowledge of managers in the field of accounting, finance, management and auditing had a significant effect on the behavior of opportunistic profit management.
Conclusion: The increase in implicit knowledge of managers in the field of accounting and finance, management and auditing cause an increase in profit management by managers. In other words, when this knowledge increases, the conflict of interest between managers and auditors decreases, and as a result, profit management increases |
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| Keywords: Tacit knowledge of managers, Efficient profit management, Opportunistic profit management, Moral deviations |
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Full-Text [PDF 551 kb]
(418 Downloads)
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Type of Study: Research |
Subject:
Special
Received: 2022/10/11 | Accepted: 2022/12/4 | Published: 2024/08/31
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