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A study on the relationship between fraud and financial liability of listed companies in Tehran Stock Exchange

Academic Journal of Accounting and Economic Researches

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Title A study on the relationship between fraud and financial liability of listed companies in Tehran Stock Exchange
 
Creator Kamrani, Hossein
Abedini, Bijan
 
Description Financing through liability is a favorable financing option for the Board due to tax savings and its lower rates compared to the expected return on equity. However, the Board is widely motivated for misusing the wealth of shareholders and creditors to protect its own interests. In recent years, various types of financial fraud has caused great concern and has attracted the attentions. Falsification of financial statements, including the manipulation of their constituent elements through overstating assets, sales and profits or understating the liabilities, expenses and loss. Existing studies suggest a direct link between fraud in corporates and the corporates financing options. The aim of this study is to examine the relationship between fraud and financial liability and cash policies. For this purpose, a sample of 120 companies listed in Tehran Stock Exchange has been reviewed for the 5-year period 2009 to 2013. To verify the hypotheses, logistic regression analysis is used. Hypotheses testing results show that there is a significant relationship between the fraud (tax distortions) in financial reporting and financial liability in the corporates. However, there is also no significant relationship between the fraud (financial and tax distortions) in financial reporting and cash holdings in corporates.
 
Publisher Academic Journal of Accounting and Economic Researches ISSN 2333-0783
 
Contributor —
 
Date 2018-02-06
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier http://worldofresearches.com/ojs-2.4.4-1/index.php/ajaer/article/view/641
 
Source Academic Journal of Accounting and Economic Researches ISSN 2333-0783; Vol 3, No 3 (2014): July 2014
2333-0783
2375-7493
 
Language eng
 
Relation http://worldofresearches.com/ojs-2.4.4-1/index.php/ajaer/article/view/641/417
 
Rights Copyright (c) 2018 Academic Journal of Accounting and Economic Researches ISSN 2333-0783
http://creativecommons.org/licenses/by-nc/4.0