Accounting and Auditing Research

Accounting and Auditing Research

Corruption a Symbol of Fraud, Agency Costs and Earning Dividend Policy

Document Type : Original Article

Authors
Jafar Ahmadpour 1
Mahmoud lari DashtBayaz 2
Mahdi Salehi 3
1 Department of Accounting, Qaenat Branch, Islamic Azad University, Qaenat, Iran
2 Associate Prof Accounting, Faculty of Economics and Administrative Sciences, Ferdowsi University of Mashhad, Mashhad, Iran
3 Prof Accounting, Faculty of Economics and Administrative Sciences, Ferdowsi University of Mashhad, Mashhad, Iran
10.22034/iaar.2024.211307
Abstract
The present study examines the role of corruption in earning dividend policy with the agency costs approach. The main discussion of the present study is to investigate the role of corruption in the behavior of managers through agency costs and earning dividend policy. One of the stimuli for shareholder control by shareholders that they can use in corruption is decisions about dividend policy. This study is a descriptive-correlational investigation based on panel data analysis. To establish the theoretical foundations for the research subject, library and documentary studies have been utilized. The statistical population of the study consists of all companies listed on the Tehran Stock Exchange during the period of 2011 to 2022. A sample of 141 companies listed on the stock exchange during the research period were selected. Hypotheses are tested in the present study using statistical software such as Stata12 and Eviews12. Logistic regression and multivariate regression were employed to test the hypotheses. The results showed that corruption has a positive correlation with dividend payment and payout ratio. There is also a stronger positive relationship between corruption dividend policy in firms with higher agency costs. When corruption in the firm increases, managers seek to use the firm's resources for informal payments. Shareholders who identify this risk are looking for ways to force managers to distribute more earnings in order to reduce agency problems. As, Corruption in has an important role on earning dividend policy, also in these firms, the cost of agency increases. In this regard, managers are trying to depict better performance.
Keywords
Corruption
Agency Costs
Earning Dividend Policy
Pay Dividends
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Accounting and Auditing Research
Volume 16, Issue 63
Autumn 2024
Pages 85-108