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:: year 15, Issue 58 (2023) ::
fa 2023, 15(58): 90-76 Back to browse issues page
Examining Classification Shifting Behavior of Earnings Statement items: The Effect of the CEO Tenure
Abbas Aflatooni * 1, Fatemeh Arjmand2 , Mina Mahdigholi2
1- Department of Accounting, Faculty of Economics and Social Sciences, Bu-Ali Sina University, Hamedan, Iran.
2- Ershad Damavand University, Tehran, Iran.
Abstract:   (1355 Views)
 Classification shifting of earnings statement items as a tool for (operational) earnings management has been investigated in recent studies. The purpose of this paper is to investigate the behavior of classification shifting in earnings statement as a tool for earnings management and the effect of the CEO's tenure on this behavior. Statistical analysis has been conduct using sample data consisting of 136 companies accepted to the Tehran Stock Exchange in the period from 2014 to 2022. In order to investigate the behavior of classification shifting in earnings statement items, the McVay (2006) approach was used, and regression models with the generalized least squares estimation method were used to test the hypotheses. The results confirm the use of classification shifting in earnings statement items for managing operational earnings. Also, the findings indicate the existence of a significant negative relationship between the tenure of the CEO and the classification shifting, in other words, with the increase of the CEO tenure, the behavior of classification shifting decreases; but this effect in the early years of the CEO's tenure is not different compared to other years of the tenure. The results of this study add to the literature of earnings management and provide guidelines for financial analysts, investors and board members of companies. The research evidence deepens the understanding of CEOs' job concerns and the mechanism of managers' reputation and helps to understand the motivations for classification shifting.
 
Article number: 5
Keywords: Classification Shifting, Earnings Management, CEO Tenure, Early Years of CEO Tenure.
Full-Text [PDF 552 kb]   (102 Downloads)    
Type of Study: Research | Subject: Special
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Aflatooni A, Arjmand F, Mahdigholi M. Examining Classification Shifting Behavior of Earnings Statement items: The Effect of the CEO Tenure. fa 2023; 15 (58) : 5
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year 15, Issue 58 (2023) Back to browse issues page
فصلنامه حسابداری مالی Quarterly Financial Accounting
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