Authors : Vajihe , Ebrahimi and Mohamad Reza Abdoli
Abstract: The effect of executive compensation plans on earnings management with a focus on discretionary accruals to manipulate earnings as an indicator of the companies listed on the Stock Exchange of Tehran. Understanding the potential relationship, remuneration committee and the type of earnings management (predictive or opportunistically) the annual financial report, in terms of earnings management can be useful to identify the aspects to be considered. Therefore, the research for this problem is that the field of higher incentive compensation committee (lower) for companies with predictive earnings management (opportunistic) provide? To test these hypotheses by examining changes in the level of CEO and Chairman of the Board reports to the Annual General Assembly of the firms listed in the Tehran Stock Exchange in the period 2008-2013, 144 companies (of 9 different industry) through the use of regression was used to test the hypothesis. To measure earnings management was modified Jones model and hypothesis to calculate the discretionary accruals for all the selected companies for many years (for the years 2008-2013) regressions were run for each company in each industry influence executive compensation programs to determine the type of earnings management. The results showed a significant relationship between earnings management board compensation predictive and there is no significant relationship as well as the second hypothesis is based on the fact that the management of opportunistic earnings and remuneration of the board there is a significant relationship confirmed.
Vajihe , Ebrahimi and Mohamad Reza Abdoli, 2016. Earnings Management, Incentive Plans for Managers and Firm Performance: Evidence in the Market Capital Tehran Stock Exchange. International Business Management, 10: 1292-1296.