چکیده:
The present study aimed to investigate the impact of product market competition, corporate
governance accounting restatements of the firms listed on TSE. This study applies accounting
restatement criterion for identification of low quality of reported accounting information in past
financial statements of the firms listed on TSE. For this purpose, according to literature and
institutional environment we select a set of most important corporate governance mechanisms include ownership concentration, board of directors independence and audit firm size associated with some control variable include corporation size and liquidity ratio that can be related to FRQ, and then considered to relation with earnings restatements. This study applies the financial statements information of firms listed on TSE during 2007 to 2013. The results of logistic regression analysis based on 846 year-firm observations indicate that according to past research corporate governance have a positive effect and competition has a negative effect on financial reporting quality (FRQ), however their interaction effect indicate that accounting information quality is increased. Therefore evidence of this paper support this opinion that competition and corporate governance mechanisms are complementary.
خلاصه ماشینی:
"The results of logistic regression analysis based on 846 year-firm observations indicate that according to past research corporate governance have a positive effect and competition has a negative effect on financial reporting quality (FRQ), however their interaction effect indicate that accounting information quality is increased.
The present study seeks to use information in financial statements of companies listed in Tehran stock exchange market to examine the role of interaction between product market competition and corporate governance in enhancement of financial reporting with the use of earnings restatement criteria.
Hence, based on the above-mentioned theory and evidence, the following hypotheses concerning the product market competition and corporate governance and their interaction effect on financial reporting quality are presented: H1: There is a positive relationship between PMC and earnings restatements.
Research model and method to test hypotheses The goal of this study is to investigate the relation among corporate governance and product market competition criteria and financial reporting quality performance.
Results of hypothesis 2-4 statistics Variables β Std. Eror Wald Sta. p-value Block -06046 36030 -26058 06040 Indep 76210 16854 1 06318 AuSize -26021 06854 -46454 06034 Size 06389 06338 16789 06041 Liq 36065 06245 36451 06234 Constant 10667 36659 96099 06003 In the final test, the simultaneous relation of product market competition and corporate governance mechanism (including ownership concentration, board independence, and auditor‟s size) with accounting restatement is examined."