Journal of Iranian Accounting Review

Journal of Iranian Accounting Review

Effect of International Institutional Factors and Earning Quality of Listed Banks in Tehran Exchange Market vis-a-vis other Countries

Document Type : Original Article

Authors
Ali Saghafi 1
Ibrahim Jafarimanesh 2
1 Accounting Professor of Allameh Tabataba'i University
2 PhD Student of Accounting, Shahid Beheshti University
10.22055/jiar.2015.12240
Abstract
In this paper earning quality of listed banks in Tehran Stock Exchange has been examined from two perspectives; earning persistence and predictability of cash flows in general and future loan write-offs for banks. The relationship between the effect of institutional factors and earning quality of those banks is studied too. The studied factors consist of legal, extra-legal and political factors and our selected banks include 10 banks during 1388-1393 time period. The Statistical method of this research is panel regression. The method was selected since authors, unlike prior researchs, wanted to control and examine time and cross sectional effects. The findings show that improvement of extra-legal and political factors is significantly related to earning quality promotion. Comparison of gained results with international findings shows consistency between those factors and the findings, although legal factors are excluded from this rule.
Keywords
Earning quality
Institutional factors
Iranian banks
International factors