%0 Journal Article
%T Investigating the Relationship Between Financial Incentives of Executives and The ‎Representation of Financial Statements
%A Mohammad VAHDANI
%A ‎ Zahra FARHADI
%A Javad MOHAMMADI MEHR
%J Journal of Organizational Behavior Research
%@ 2528-9705
%D 2020
%V 5
%N 1
%P 75-86
%X Information asymmetry and personal incentives are two main causes of manipulation and ‎distortion of financial statements. One possible strategy is to reward executives in an attempt to ‎align the interests of owners and directors. The distortion and manipulation of information leads ‎to the representation of financial statements. Therefore, the purpose of this study was to explore ‎the relationship between financial incentives of executives and the representation of financial ‎statements.‎ The study was based on the library research and the analysis of panel data. It investigated ‎the financial information of 108 companies listed on Tehran Stock Exchange Market from ‎‎2011-2017 (756 company-year). The results of hypothesis testing suggested that there was a ‎significant positive relationship between the managers’ rewards and the representation of ‎financial statements. Also, there was a significant positive relationship between the board ‎duality and the representation of financial statements. With regard to the significance level and ‎the estimation coefficient, the independence of the board of directors, the board size and the ‎concentration of ownership were inversely related to the representation of financial statements‎‎‎.
%U https://odad.org/article/investigating-the-relationship-between-financial-incentives-of-executives-and-the-representation-of-financial-statements