Document Type: Original Article

Authors

1 Department of Accounting, Yazd Branch, Islamic Azad University, Yazd, Iran

2 Department of Management, Yazd Branch, Islamic Azad University, Yazd, Iran Safaieeh, Shoahadegomnam Road, Zip code: 89195/155, Yazd, Iran

Abstract

The main objective of this study was to investigate the relationship between corporate governance mechanisms and earning quality. In this study, the size of board of directors, number of non-bound managers in the board and institutional investors are used as corporate governance system mechanisms. Earning quality is also measured based on the relationship between earnings and accruals. Required data collected from the selected sample including 90 companies listed in Tehran Stock Exchange from 2008 to 2012. Hypotheses' testing was conducted using multiple regression and Eviews software. The overall result of the study shows that there is a significant relationship between corporate governance and earnings quality.

Keywords

Abooyi Mehrizi, A. (2012). Investigation of the relationship between corporate disclosure quality, earning quality and cost of capital of companies listed in Tehran Stock Exchange, MA Thesis, Islamic Azad University Yazd Branch.

Arab Salehi M; Ziayi, M. (2011). Relationship between governance system and earnings quality of companies listed in Tehran Stock Exchange, Journal of Financial Accounting, Second edition.5: 39-56.

Chang, J; Sun, H. (2010). Does the disclosure of corporate governancestructures affect firms earings quality? Review of accounting and finance. 9(3): 212-243.

Firth, M.; Fung, P.; Oliver, M. (2007). Ownership, two-tier board structure and the in formativeness of earnings-evidence from china. Journal of accounting and public policy. 26: 463-496.

Isma'ilzadih Maghari, A.; Jalili, M.; A Zndabbas Abadi, A. (2011). Investigation of the impact of corporate governance on earning quality in Tehran Stock Exchange, Journal of Management Accounting, Third Edition, No. VII.

Iazdinia, N.; Rsayian, A. (2011). Relationship between certain controlling tools of corporate governance and economic and financial measures to evaluate performance, Journal of Accounting Knowledge, First Edition. 1: 53-72.

Izadinia, N.; Rsayian, A. (2012). Corporate governance mechanisms and earning quality, Journal of Empirical Research of Financial Accounting, First Edition, Vol 1.

Jiang, W.; Lee, P.; Ahandarajan, A. (2008). The association between corporate governance and earnings quality: further evidence using the Gov-Score advances in accounting, incorporating advances in international accounting. 24: 191-201.

Karimipoor  Ardekani, M. (2013). Corporate governance and its impact on the balance of cash held in companies listed in Tehran Stock Exchange, MA Thesis, Islamic Azad University of Yazd.

Khoshtinat, M.; Ismaili S. (2007). Relationship between earning quality and stock returns, Journal of Accounting Research, No. 12 and 13.

Machuga, S; Teitel, k. (2009). Board of director characteristics and earnings quality surrounding implementation of a corporate governance code in Mexico, journal of international accounting, auditing and tanation, 18: 1-13.

Mashayekh , Sh; Ismaili M. (2007). Investigation of relationship between earning quality and some aspects of quality of governance in companies listed in Tehran Stock Exchange, accounting and auditing investigations, 45: 25-44.

Nikbakh, M,Seyyedi, M; Hashem Al-Husseini, R. (2011). Investigation of impact of characteristics of board of directors  on firm performance, Journal of Accounting developments of Shiraz University. II(I): 270-251.

Nikoomaram, H., Mohammadzadeh Saleteh, H. (2011). Providing  a model to explain the relationship between corporate governance and earning quality, Journal of Management Accounting, Third edition, No. IV.

Solomon, J.; Lin, S.; Northon, S.; Solomon, A. (2003). Corporate governance reform in Taiwan, corporate governance: an international review.

Zinoldini Meymand, L. (2012). Effect of corporate governance system on relationship between capital structure and corporate value, master's thesis, Islamic Azad University of Yazd.