Identification and Prioritization of Professional Accounting Ethics Indicators Affecting Earnings Management and Tone Management
Keywords:
professional accounting ethics, earnings management, tone management, honesty and transparencyAbstract
The objective of this study was to identify and prioritize professional accounting ethics indicators that influence earnings management and tone management. This applied and descriptive study employed the Analytic Hierarchy Process (AHP) to collect and analyze data through pairwise comparison questionnaires. The statistical population consisted of certified public accountants, independent auditors, auditors of the Audit Organization, and business unit managers, from whom 25 experts were purposively selected. Content validity was assessed using the Lawshe Content Validity Ratio (CVR), and all indicators were validated. Weights of criteria and subcriteria were computed using eigenvector analysis, and consistency ratios were examined to ensure the reliability of comparisons. The AHP results revealed that “honesty and transparency” ranked first with a weight of 0.339, demonstrating the strongest influence on reducing earnings management and tone manipulation. “Professional responsibility” (0.222) and “fairness and justice” (0.207) ranked second and third, respectively, while “confidentiality and integrity” had the lowest weight (0.097). Among subcriteria, “avoidance of factual distortion” (0.192) was the highest-ranked indicator, followed by “stakeholder accountability” (0.084) and “compliance with laws and regulations” (0.075). The overall consistency ratio was 0.006, indicating highly reliable pairwise judgments. The study concludes that professional ethics indicators—particularly honesty and transparency—play a crucial role in mitigating earnings management and tone manipulation and can serve as a foundation for developing ethical guidelines and regulatory mechanisms to enhance the quality of financial reporting.
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Copyright (c) 2025 Matin Ghasemi (Author); Mostafa Ghasemi (Corresponding author); Abdolreza Mohseni (Author)
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