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Influence of managerial ethical values on perceived earnings quality: evidence from Japan / Masumi Nakashima

This paper explores whether managerial ethical values and incentives/ pressures affect perceived earnings quality through structural equation modeling based on responses provided by chief financial officers (CFOs) of public firms in Japan. This study develops the research framework by applying the T...

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Main Author: Nakashima, Masumi
Format: Article
Language:English
Published: Accounting Research Institute (ARI) and UiTM Press, Universiti Teknologi MARA 2023
Subjects:
HG Finance
Online Access:https://ir.uitm.edu.my/id/eprint/89311/1/89311.pdf
https://ir.uitm.edu.my/id/eprint/89311/
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spelling my.uitm.ir.893112024-01-11T07:43:39Z https://ir.uitm.edu.my/id/eprint/89311/ Influence of managerial ethical values on perceived earnings quality: evidence from Japan / Masumi Nakashima apmaj Nakashima, Masumi HG Finance This paper explores whether managerial ethical values and incentives/ pressures affect perceived earnings quality through structural equation modeling based on responses provided by chief financial officers (CFOs) of public firms in Japan. This study develops the research framework by applying the Theory of Planned Behavior, the Upper Echelon Theory, and the Fraud Triangle Theory. In this model, managerial decisions are viewed as intentions and earnings quality as behavior or the outcome of intentions. In this study, managerial ethical values are quantified as the tone at the top (TATT), and the simultaneous analysis results support my theoretical model and show that subjective norms and behavioral beliefs influence earnings management intentions. It was found that perceived TATT has a significant and positive effect on perceived earnings quality, and perceived incentives/pressures have a significant negative influence on perceived earnings quality. Overall, my model implies that since incentives/pressures induce management to improve earnings quality, individuals with stronger ethical values should be appointed as managers; moreover, an ethical environment can be fostered by strengthening accounting standards. Accounting Research Institute (ARI) and UiTM Press, Universiti Teknologi MARA 2023-12 Article PeerReviewed text en https://ir.uitm.edu.my/id/eprint/89311/1/89311.pdf Influence of managerial ethical values on perceived earnings quality: evidence from Japan / Masumi Nakashima. (2023) Asia-Pacific Management Accounting Journal (APMAJ) <https://ir.uitm.edu.my/view/publication/Asia-Pacific_Management_Accounting_Journal_=28APMAJ=29/>, 18 (3): 5. pp. 139-163. ISSN 2550-1631
institution Universiti Teknologi Mara
building Tun Abdul Razak Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Teknologi Mara
content_source UiTM Institutional Repository
url_provider http://ir.uitm.edu.my/
language English
topic HG Finance
spellingShingle HG Finance
Nakashima, Masumi
Influence of managerial ethical values on perceived earnings quality: evidence from Japan / Masumi Nakashima
description This paper explores whether managerial ethical values and incentives/ pressures affect perceived earnings quality through structural equation modeling based on responses provided by chief financial officers (CFOs) of public firms in Japan. This study develops the research framework by applying the Theory of Planned Behavior, the Upper Echelon Theory, and the Fraud Triangle Theory. In this model, managerial decisions are viewed as intentions and earnings quality as behavior or the outcome of intentions. In this study, managerial ethical values are quantified as the tone at the top (TATT), and the simultaneous analysis results support my theoretical model and show that subjective norms and behavioral beliefs influence earnings management intentions. It was found that perceived TATT has a significant and positive effect on perceived earnings quality, and perceived incentives/pressures have a significant negative influence on perceived earnings quality. Overall, my model implies that since incentives/pressures induce management to improve earnings quality, individuals with stronger ethical values should be appointed as managers; moreover, an ethical environment can be fostered by strengthening accounting standards.
format Article
author Nakashima, Masumi
author_facet Nakashima, Masumi
author_sort Nakashima, Masumi
title Influence of managerial ethical values on perceived earnings quality: evidence from Japan / Masumi Nakashima
title_short Influence of managerial ethical values on perceived earnings quality: evidence from Japan / Masumi Nakashima
title_full Influence of managerial ethical values on perceived earnings quality: evidence from Japan / Masumi Nakashima
title_fullStr Influence of managerial ethical values on perceived earnings quality: evidence from Japan / Masumi Nakashima
title_full_unstemmed Influence of managerial ethical values on perceived earnings quality: evidence from Japan / Masumi Nakashima
title_sort influence of managerial ethical values on perceived earnings quality: evidence from japan / masumi nakashima
publisher Accounting Research Institute (ARI) and UiTM Press, Universiti Teknologi MARA
publishDate 2023
url https://ir.uitm.edu.my/id/eprint/89311/1/89311.pdf
https://ir.uitm.edu.my/id/eprint/89311/
_version_ 1789429264874995712
score 13.211869

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