ARTÍCULO
TITULO

The Effect of Leverage and Liquidity Ratios on Earnings Management and Capital of Banks Listed on the Tehran Stock Exchange

Abdolkarim Moghaddam    
Narges Abbaspour    

Resumen

Banks, like all profit institutions seek their profitable growth and maximize their shareholders? wealth, increased profitability of the banks on the one hand, increases the company's value and on the other hand, increases executives? compensation and increases their tenure and because the same reason, bank managers have high motivation to increase profits through discretionary accruals. The capital structure also due to the relationship with credit risk and cost of capital is considered as one of important issues in the banks, so, the current research aimed to determine the e of leverage and liquidity ratios on earnings management and capital of banks listed on the Tehran Stock Exchange. In this research, financial information of 14 banks listed on the Tehran Stock Exchange during the period 2010 to 2015 have been studied and for performing this study, multivariate linear regression analysis using panel data has been used. The results show that financial and liquidity leverage has significant positive effect on earnings management of banks, therefore increasing the degree of financial leverage and by increasing bank liquidity, the possibility of using discretionary accruals and earnings management at banks increase. The results also showed that financial leverage has a significant negative effect on the bank's capital adequacy ratio and with increasing financial leverage bank capital adequacy ratio is reduced.Keywords earnings management, discretionary accruals, the adequacy of bank capital, financial and liquidity leverage of banksJEL Classifications: E44, G2

 Artículos similares

       
 
Marheni Marheni,(IAIN Syaikh Abdurrahman Siddik Bangka BelitungIndonesia)Yunita Maharani,(STIE IBEK PangkalpinangIndonesia)Liya Ermawati,(UIN Raden Intan LampungIndonesia)     Pág. 198 - 211
The aims of study were 1) to analyze the effect of Good Corporate Governance (GCG) on transfer pricing; 2) Analyzing the effect of tunneling incentive on transfer pricing and 3) Analyzing the effect of leverage on transfer pricing. The research populatio... ver más

 
Sari Mustika Widyastuti,(Universitas TamansiswaIndonesia)Inten Meutia,(Universitas SriwijayaIndonesia)Aloysius Bagas Candrakanta,(Universitas SriwijayaIndonesia)     Pág. 13 - 27
         This study was conducted to analyze and test and provide empirical evidence of the effect of profitability, leverage, corporate governance, and capital intensity on tax avoidance. The population in this study were compan... ver más

 
Emi Ita Bonita Simatupang, Veronica Yulinar Ernita, Bonifasya Silalahi, Dina Rosalina, Maya Sabirina Panggabean     Pág. 905 - 914
Economic conditions in Indonesia are currently in a fairly good development period, this can be seen from the number of companies that are growing and continuing to develop, one of which is manufacturing companies. This study uses a sample of 95 property... ver más

 
M Alfiandri Setiawan, Andri Indrawan, Venita Sofiani     Pág. 1228 - 1235
The purpose of this study was to determine the effect of leverage and cash flow on financial performance. The research method used in this research is using quantitative methods with descriptive and associative approaches. The population and sample in th... ver más

 
Ruth Citra Lumbantobing, Namira Ufrida Rahmi, Nurhetty Nababan, Debora Sinaga     Pág. 1316 - 1327
The aim of the researchers conduct research to examine how the influence of financial distress, leverage, capital intensity, and profitability on accounting conservatism. The population of 79 companies and 90 samples has been multiplied by three years, a... ver más