The Impact of Board of Directors Remuneration and Institutional Ownership on Earnings Management in Tehran Stock Exchange Listed Companies
Quarterly Journal of Securities Exchange

Quarterly Journal of Securities Exchange

The Impact of Board of Directors Remuneration and Institutional Ownership on Earnings Management in Tehran Stock Exchange Listed Companies

Authors
Mehdi Moradzadehfard
Mohammadsadegh Zarezadeh Mehrizy
Reza Takor
Abstract
The purpose of this paper is investigating the relationship between board compensation and institutional ownership with earnings management. A set of listed Companies in Tehran Stock Exchange have been investigated to analyze the relationship for the year 2007 to 2011. Modified Cross Sectional Jones Model (1995) has been used to determine the earnings management. The task of analyzing and testing the hypothesis is fulfilled by the panel data models.
The findings of the paper indicate the presence of negative relationship between institutional ownership and earnings management while we got statistically significant and positive relationship between Board compensation and earnings management.
Keywords
Earnings Management
discretionary Accruals
Board Composition
Institutional Ownership.