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The effect of Managers' Power and Transparency of Financial Reporting on the Fraud Probability Using Different Approaches to Detecting Fraud
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Naser Dadash1   , Shokrollah Khajavi * 2, Afsaneh Soroushyar1 |
1- Departmentof Accounting , Isfahan (Khorasgan) Branch,Islamic Azad university, Isfahan, Iran.
2- Shiraz University, Shiraz, Iran. (corresponding Author) |
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Abstract: (3711 Views) |
| The fraud in the financial statements has adverse effects for shareholders and other users, undermining the capital market and losing trust. There are many factors that can influence the likelihood of fraud in financial statements, including the power of managers, and the transparency of financial reporting. Therefore, given the importance of the issue and the need to pay attention to the role of auditors in discussing corruption and fraud in enhancing the health of the administrative system, the main purpose of this study was to investigate the influence of variables of managers chr('39')power, managerschr('39') and financial reporting transparency on the probability of fraud using there are different approaches to detecting fraud. The statistical population of this research is the companies listed in Tehran Stock Exchange and its statistical sample includes data of 101 companies for the period of 8 years 2010-2017. The sampling method was systematic elimination. In this study, four criteria were used to calculate the likelihood of fraud: 1) Content analysis, 2) Hribar model, 3) Brazel model, and 4) Rahroui model. Logit regression models were used to analyze the data and test the hypotheses. The results of all four criteria showed that managerschr('39') power has a significant effect on the probability of fraud in companies, so the first hypothesis of the study is accepted. The results of the study using all four fraud criteria showed that transparency of financial reporting had a significant effect on the probability of fraud in companies. |
Article number: 1 |
| Keywords: Managers 'Power, Financial Reporting Transparency, Fraud Probability. |
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Full-Text [PDF 1598 kb]
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Type of Study: Research |
Subject:
Special
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