چکیده:
Studies on the influence of corporate governance mechanisms on firm performance often overlook the possibility that reported earnings can be misrepresented by managers in order to achieve a variety of objectives. Tax is undeniably essential for a country and also a corporation. Both parties have a similar interest of tax. For a country it is its source of income, while for a corporation tax will reduce its net income. Therefore, sometimes corporation use earnings management practice to control its income which will impacted tax in the same time. This paper examines the relationship between corporate governance on Earnings Management and Tax Management. Secondary data were extracted from annual reports of the sample firms for the period between 2010 to 2014 and univariate OLS multiple regression was used as a tool for data analysis. Our finding show that there is significant impact of corporate governance to earnings management and tax management.
خلاصه ماشینی:
Corporate Governance, Earnings Management and Tax Management: A Case of Iranian Manufacturing Firms in Tehran Stock Exchange Salman Hidari Dalfardi MA Student in Accounting, Bandar Abbas Branch, Islamic Azad University, Bandar Abbas, Iran Email: heydarisalman@yahoo.
com Abstract: Studies on the influence of corporate governance mechanisms on firm performance often overlook the possibility that reported earnings can be misrepresented by managers in order to achieve a variety of objectives.
6( give the following definition of account manipulation:"The use of management’s discretion to make accounting choices or to design transactions so as to affect the possibilities of wealth transfer between the company and society (political cost(, funds providers (cost of capital( or managers (compensation plans(".
Healy and Wahlen (1999( note that the incentives to "window dress financial statements" encompass the motivation to increase managers compensation and job security, to avoid the violation of debt covenants, and to decrease regulatory costs or increase regulatory benefit.
Yermack (2004( in his research conclude that the main objective of board is to maximizing shareholders wealth by using an effective tax management in the corporation.
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