A Study on the Relationship between Proprietorship Concentration and Profit Management in the Companies Listed in Tehran Stock Exchange
DOI:
https://doi.org/10.7596/taksad.v6i1.712Keywords:
Concentration of Proprietorship, Profit Management, Institutional Investment.Abstract
The presence of institutional investors may change the behaviors of companies. The impact of institutional investors on management decisions on financial affairs have been proven in other studies; yet, the present study aims to investigate the relationship between lack of information symmetry an concentration of proprietorship with profit management in the companies listed in Tehran Stock Exchange. The period under study included years 2004 to 2009. Rahavard Novin Computer application was utilized to collect the data; then they were calculated using Microsoft Excel. SPSS computer application was used to test research hypothesis and conduct other statistical analysis using statistical methods like descriptive statistics, correlation (correlation coefficient, coefficient of determination), regression analysis and testing its coefficients, correlation analysis and test of coefficients and significance of the difference between two correlation coefficients. A total of 109 active companies in the stock exchange were selected as the sample of the study. Results on the first hypothesis revealed that the relationship between concentration of proprietorship and lack of information symmetry. In case of the second hypothesis, it is predicted that there is a significant relationship between profit management with lack of information symmetry and concentration of proprietorship. According to research results, investors and analysts ought to pay attention to factors like proprietorship composition, the level of information symmetry along with the figures published by the companies when making short and long-term decisions.
References
Ahmad, Poor, A. & Rasayian, Amir (2006). The Relationship between Risk Criteria and Price Conflict for Buying and Selling Shares in Tehran Stock Exchange. The Accounting and Auditing Quarterly. Vol. 46.
Etemadi Hossein; Azar Adel & Nazem Ardakani, Mahdi (2010). The Relationship between Auditor's Specialty in İndustry on Real Profit Management and Future Operational Performance. The Journal of Accounting Knowledge. Vol. 1, pp. 9- 28.
Fakhari Hashem & Adili, Mohammad Reza (2012). The Relationship between Open Cash Flows and Profit Management Through Real Activities of the Companies Admitted in Tehran Stock Exchange. The Journal of the Science of Accounting. Year 4. Vol. 13, pp. 75- 103.
Khodadadi, Vali; Taker, Reza; Zare Zadeh, Mahrizi & Sadegh, Mohammad (2010). The Effect of Profit Management on Relativity of Profit and Nominal Value: Comparing Long Term and Short-Term Optional Accruals. Scientific Research Quarterly of Financial Accounting.
Kordestani, Gholamreza & Langroodi, Habib (2008). Conservatism in Financial Reporting: The Relationship between Lack Of Temporal Symmetry and MTB as Two Criteria of Testing Conservatism. Journal of Accounting and Auditing Studies. Vol. 52.
Nikoo Maram, Hashem; Bani Mahd, Bahman; Rahnamaye Rood, Poshti & Fereidoon, Kiani Ali (2013). Political Economy and Profit Management. Science And Research Quarterly Of Accounting Management. Year 6. Vol. 18.
Nikoo Maram, Hashem & Pazooki (2014). Management Reward and Stability of Profit. Scientific and Research Quarterly of Management Accounting. Year 8. Vol. 24.
Noorvash, A. & Ebrahimi Kordlar, Ali (2005). The Relationship between Composition of Shareholders with İnformation Symmetry and Profitability of Accounting Performance. Accounting and Auditing Studies Journal. Vol. 42.
Yaghoob Nejad, Ahmad; Bani Mahd, Bahman & Shokri, Azam (2012). A Model for Discovering Profit in Companies Admitted in Tehran: Stock Exchange. Journal of Management Accounting. Year 5. Pp 1- 16.
Downloads
Published
How to Cite
Issue
Section
License
All papers licensed under Creative Commons 4.0 CC-BY.- Share — copy and redistribute the material in any medium or format
- Adapt — remix, transform, and build upon the material for any purpose, even commercially.
Under the following terms:
Attribution — You must give appropriate credit, provide a link to the license, and indicate if changes were made. You may do so in any reasonable manner, but not in any way that suggests the licensor endorses you or your use.
- No additional restrictions — You may not apply legal terms or technological measures that legally restrict others from doing anything the license permits.