Accounting and Auditing Research

Accounting and Auditing Research

Artificial intelligence approach in comparatively explaining the effect of governance system criteria and financial ratios on economic profit and accounting profit

Document Type : Original Article

Authors
Fatemeh Parvaneh 1
Roya Darabi 2
Shahram Chaharmahali 3
1 Ph.D. Candidate in Accounting, Faculty of Economics and Accounting, Islamic Azad University South Tehran Branch, Tehran, Iran
2 Department of Accounting, South Tehran Branch, Islamic Azad University, Tehran, Iran
3 Assistant Prof., Faculty of Economic and Accounting, Islamic Azad University South Tehran Branch, Tehran, Iran
10.22034/iaar.2022.156648
Abstract
Profit is one of the items in the financial statements that has a great impact on the decision making of users of financial statements and has attracted a lot of attention. One of the most important and vital issues of any economic activity is the evaluation of the achievement of the set goals. Undoubtedly, this issue enters a new field with the increasing progress of economic activities and the need for more accurate and closer methods to reality is felt. And completes older methods. The purpose of this study is to identify the effective factors to explain economic profit and accounting profit using artificial intelligence approach. Therefore, according to the objectives of the research, the financial information of 127 companies during the years 1390 to 1398 has been used to test the research hypotheses. The management system has a higher ability to explain the company's profit (accounting and economic profit) and it can also be said that the predictive power of accounting profit is higher than economic profit using financial criteria.
Keywords
Economic Profit
Accounting Profit
Corporate Governance
Financial Ratios
Artificial Intelligence Algorithm
Accounting and Auditing Research
Volume 14, Issue 54
Summer 2022
Pages 129-146