The Effect of Investment Efficiency on Earnings Opacity with an Emphasis on the Role of Moral Hazard

Mahdi Irani Estiyar¹ Saeid AnvarKhatibi²

1) Master of Accounting
2) Assistant Professor of Accounting Department of Tabriz Azad University

IOI Code : XHFK-KCKKE
Publication : 2nd International Conference on Applied Researches in Humanities, Economics, Management & Accounting(icrhema.com/2nd)
Abstract :
    Following the separation of the management of companies from their ownership and the creation of representation issues, as well as the increase of information asymmetry between managers and owners, the issue of investment efficiency has become very important and can act as a tool to protect the interests of interest groups and cause the use of Provide proper management of resources to reduce information asymmetry and agency conflicts. Therefore, the purpose of this study is to investigate the effect of investment efficiency on earnings opacity, emphasizing the role of moral hazard in companies listed on the Tehran Stock Exchange. In this regard, 110 companies were selected for the period of 2016-2021. The purpose of applied research and its methodology is post-event type. The combined data approach has been used to test the research hypotheses. Eviews statistical software was used to test research hypotheses. The results showed that investment efficiency has a negative and significant effect on the lack of profit transparency. Also, the results showed that the increase in moral hazard weakens the negative relationship between investment efficiency and earnings opacity.

Keywords : investment efficiency moral hazard earnings opacity