Management Characteristics and Audit Opinion Shopping

The present study assesses the relationship between management characteristics (management entrenchment, narcissism, CEO overconfidence, board effort, real and accrual-based earnings management) and audit opinion shopping in the Tehran Stock Exchange-listed firms. In other words, this paper seeks to...

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Main Authors: Maryam Seifzadeh, Mahdi Salehi, Bizhan Abedini, Mohammad Hamed Khanmohammadi, Mohammad Hossein Ranjbar
Format: Article
Language:English
Published: Ferdowsi University of Mashhad 2021-12-01
Series:Iranian Journal of Accounting, Auditing & Finance
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Online Access:https://ijaaf.um.ac.ir/article_41404_099b033f75d644dd0a2a413149848999.pdf
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author Maryam Seifzadeh
Mahdi Salehi
Bizhan Abedini
Mohammad Hamed Khanmohammadi
Mohammad Hossein Ranjbar
author_facet Maryam Seifzadeh
Mahdi Salehi
Bizhan Abedini
Mohammad Hamed Khanmohammadi
Mohammad Hossein Ranjbar
author_sort Maryam Seifzadeh
collection DOAJ
description The present study assesses the relationship between management characteristics (management entrenchment, narcissism, CEO overconfidence, board effort, real and accrual-based earnings management) and audit opinion shopping in the Tehran Stock Exchange-listed firms. In other words, this paper seeks to answer the question "whether management characteristics can exert a favourable effect on audit opinion shopping or not." For this study, the multivariate regression model is used for hypothesis testing. Research hypotheses are examined using a sample of 1309 observations on the Tehran Stock Exchange during 2012-2018 and by employing the panel data-based multivariate regression and fixed-effects model. The results show a negative and significant relationship between management entrenchment and managers' overconfidence and audit opinion shopping. A positive and meaningful relationship was observed between management narcissism, real and accrual-based earnings management, and board effort and audit opinion shopping.
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institution Kabale University
issn 2717-4131
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language English
publishDate 2021-12-01
publisher Ferdowsi University of Mashhad
record_format Article
series Iranian Journal of Accounting, Auditing & Finance
spelling doaj-art-e326ac1c8488424b973e599ff4b2349a2024-12-25T06:46:06ZengFerdowsi University of MashhadIranian Journal of Accounting, Auditing & Finance2717-41312588-61422021-12-0154779910.22067/ijaaf.2021.4140441404Management Characteristics and Audit Opinion ShoppingMaryam Seifzadeh0Mahdi Salehi1Bizhan Abedini2Mohammad Hamed Khanmohammadi3Mohammad Hossein Ranjbar4Department of Economics and Administrative Sciences, Qeshm Branch, Islamic Azad University, Qeshm, IranDepartment of Economics and Administrative Sciences, Ferdowsi University of Mashhad, Mashhad, IranDepartment of Economics and Administrative Sciences, Hormozgan University, Hormozgan, IranDepartment: Economics and Administrative Sciences, Damavand Branch, Islamic Azad University, Damavand, IranDepartment: Economics and Administrative Sciences, Bandar Abbas Branch, Islamic Azad University, Bandar Abbas, IranThe present study assesses the relationship between management characteristics (management entrenchment, narcissism, CEO overconfidence, board effort, real and accrual-based earnings management) and audit opinion shopping in the Tehran Stock Exchange-listed firms. In other words, this paper seeks to answer the question "whether management characteristics can exert a favourable effect on audit opinion shopping or not." For this study, the multivariate regression model is used for hypothesis testing. Research hypotheses are examined using a sample of 1309 observations on the Tehran Stock Exchange during 2012-2018 and by employing the panel data-based multivariate regression and fixed-effects model. The results show a negative and significant relationship between management entrenchment and managers' overconfidence and audit opinion shopping. A positive and meaningful relationship was observed between management narcissism, real and accrual-based earnings management, and board effort and audit opinion shopping.https://ijaaf.um.ac.ir/article_41404_099b033f75d644dd0a2a413149848999.pdfmanagement entrenchmentceo overconfidencereal and accrual-based earnings managementaudit opinion shoppingboard effort
spellingShingle Maryam Seifzadeh
Mahdi Salehi
Bizhan Abedini
Mohammad Hamed Khanmohammadi
Mohammad Hossein Ranjbar
Management Characteristics and Audit Opinion Shopping
Iranian Journal of Accounting, Auditing & Finance
management entrenchment
ceo overconfidence
real and accrual-based earnings management
audit opinion shopping
board effort
title Management Characteristics and Audit Opinion Shopping
title_full Management Characteristics and Audit Opinion Shopping
title_fullStr Management Characteristics and Audit Opinion Shopping
title_full_unstemmed Management Characteristics and Audit Opinion Shopping
title_short Management Characteristics and Audit Opinion Shopping
title_sort management characteristics and audit opinion shopping
topic management entrenchment
ceo overconfidence
real and accrual-based earnings management
audit opinion shopping
board effort
url https://ijaaf.um.ac.ir/article_41404_099b033f75d644dd0a2a413149848999.pdf
work_keys_str_mv AT maryamseifzadeh managementcharacteristicsandauditopinionshopping
AT mahdisalehi managementcharacteristicsandauditopinionshopping
AT bizhanabedini managementcharacteristicsandauditopinionshopping
AT mohammadhamedkhanmohammadi managementcharacteristicsandauditopinionshopping
AT mohammadhosseinranjbar managementcharacteristicsandauditopinionshopping