Development of a Paradigmatic Model of Earnings Management in the Automotive and Parts Manufacturing Industry

Authors

    Samaneh Elahi Roodposhti Department of Management, Ra.C., Islamic Azad University, Rasht, Iran
    Ebrahim Chirani * Department of Management, Ra.C., Islamic Azad University, Rasht, Iran chirani@iaurasht.ac.ir
    Seyyed Mozaffar Mir Bargkar Department of Management, Ra.C., Islamic Azad University, Rasht, Iran

Keywords:

Automotive and parts manufacturing industry, earnings management, paradigmatic model

Abstract

This study was conducted with the aim of developing a paradigmatic model of earnings management in the automotive and parts manufacturing industry. The data collection tool was semi-structured interviews with experts. For this purpose, using a purposive sampling approach (snowball sampling), interviews were conducted with 10 academic experts or senior managers of companies active in the automotive and parts manufacturing industry. The research data were analyzed using coding methods and the Strauss and Corbin approach, through which the main categories and concepts were extracted. The results indicate that based on the paradigmatic model of the study in the automotive and parts manufacturing industry, the causal factors include market efficiency, appropriate technology, production capability, competitive power, and government policy. The contextual factors include capital structure, competitive environment, environmental challenges, various risks, and managerial governance policies. The intervening conditions include innovation and creativity, customer orientation, human resources, professional ethics, knowledge and education, and the international system. The strategies involve sales capability and investment challenges, while the consequences pertain to profitability.

References

M. Basha, "Investigate Accrual Earning Management Practicing in Non-Financial Listed Firms in Jordan 2006-2007," 2018, doi: 10.2139/ssrn.3197671.

H. Shen, M. Zhang, M. Wang, J. Zhang, and Z. Guo, "Does teacher-turned businessmen curb accrual-based earning management and real activity manipulation," Emerging Markets Finance and Trade, vol. 58, no. 3, pp. 655-667, 2022, doi: https://doi.org/10.1080/1540496X.2020.1829586.

Q. L. Thu, "Impact of earning management and business strategy on financial distress risk of Vietnamese companies," Cogent Economics & Finance, vol. 11, no. 1, 2023, doi: 10.1080/23322039.2023.2183657.

C. Z. U. Rahman, "Influence of CEOs characteristics on the earning management via moderating role of audit committee independence in perspective of Pakistan," Webology (ISSN: 1735-188X), vol. 19, no. 4, 2022.

A. Asim and A. Ismail, "Impact of Leverage on Earning Management: Empirical Evidence from the Manufacturing Sector of Pakistan," Journal of Finance and Accounting Research, pp. 70-91, 2019, doi: https://doi.org/10.32350/JFAR.0101.05.

B. Karlina and M. R. Ramadhan, "The Effect of Financial Leverage, Company Sizes, Basic Earning Power and Activity Ratio to Earning Per Share," International Journal of Business Studies, vol. 3, no. 3, pp. 136-141, 2020, doi: 10.32924/ijbs.v3i3.135.

R. Gantino, E. Ruswanti, A. M. Widodo, and D. Iskandar, "The Comparison Models of Earning Management, CSR, and Intellectual Capital on Firm Value Moderated by Performance," Journal of Accounting Research Organization and Economics, vol. 5, no. 2, pp. 191-209, 2022, doi: 10.24815/jaroe.v5i2.26514.

N. Maqsood, T. A. Shahid, and A. U. Rehman, "The Impact of Dividend and Tax Avoidance on Earning Management of Companies," Bulletin of Business and Economics (BBE), vol. 13, no. 1, 2024, doi: 10.61506/01.00201.

M. Irene and V. Viriany, "Leverage, Accounting Conservatism Terhadap Earnings Quality Dengan Firm Size Sebagai Moderasi," Jurnal Paradigma Akuntansi, vol. 6, no. 1, pp. 180-189, 2024, doi: 10.24912/jpa.v6i1.28659.

T. Erawati, H. Kusuma, T. Swantari, and R. Listyawati, "The Importance of Liquidity to Improve the Quality Earnings of Company," Jurnal Akuntansi & Auditing Indonesia, pp. 138-147, 2023, doi: 10.20885/jaai.vol27.iss2.art3.

D. A. Andriani, Z. K. Batubara, N. Fhitri, and D. G. Sinaga, "Quick Ratio (QR), Debt to Assets Ratio (DAR) Dan Earning Per Share (EPS) Terhadap Return Saham Perusahaan Manufaktur Subsektor Otomotif Dan Komponen Yang Terdaftar Di BEI," Jurnal Minfo Polgan, vol. 13, no. 2, pp. 2626-2635, 2025, doi: 10.33395/jmp.v13i2.14563.

A. Aziz, S. M. Salman, M. Hassan, M. Younus, and H. F. Uddin, "The Impact of Audit Firm Size, Auditor Independence and Financial Expertise on Earning Quality: Mediating Role of Audit Quality," Irasd Journal of Economics, vol. 5, no. 4, pp. 1075-1086, 2023, doi: 10.52131/joe.2023.0504.0180.

A. Hashed and F. Almaqtari, "The impact of corporate governance mechanisms and IFRS on earning management in Saudi Arabia," Accounting, vol. 7, no. 1, pp. 207-224, 2021, doi: 10.5267/j.ac.2020.9.015.

M. Mukhtaruddin, W. Z. Chairunnisa, P. Patmawati, and Y. Saftiana, "Financial distress, earning management, financial statement fraud and audit quality as a moderating variable: Listed companies on the Indonesia Stock Exchange," F1000Research, vol. 11, p. 1362, 2022, doi: 10.12688/f1000research.123525.1.

H. Umar, "The Influence of Corporate Social Responsibility (CSR) Disclosure and Sustainability Accounting on Earnings Response Coefficient (ERC)," International Journal of Current Science Research and Review, vol. 04, no. 07, 2021, doi: 10.47191/ijcsrr/v4-i7-10.

R. Prihatni, A. Zakaria, H. Khairunnisa, and M. Khafid, "Does Difference Analysis of Real Earnings Management Matter During Covid-19 Pandemic? (Evidence From Indonesian Listed Companies)," Qas, vol. 24, no. 195, 2023, doi: 10.47750/qas/24.195.21.

G. Ramadhani, C. Ramayani, and N. Rosya, "Analisis Faktor Yang Mempengaruhi Earning Management Di Perusahaan Manufaktur Sektor Industri Barang Konsumsi Yang Terdaftar Di BEI Tahun 2015-2019," Horizon, vol. 1, no. 4, pp. 733-747, 2021, doi: 10.22202/horizon.v1i4.4945.

H. Cheng and X. Peng, "Research and Development Investment and Earnings Quality Based on Regression Analysis," E3s Web of Conferences, vol. 253, p. 03003, 2021, doi: 10.1051/e3sconf/202125303003.

A. Karshenasan and R. Mamashli, "The effect of management ability to control the internal financial crisis and the possibility of fraudulent reporting," Journal of Management Accounting and Auditing Knowledge, vol. 7, no. 27, pp. 95-108, 2018. [Online]. Available: https://www.jmaak.ir/article_12903_514b5085e711969e532fc89b6c8002cd.pdf.

E. Sisdianto, R. F. Ramdani, and A. Fitri, "Pengaruh Discretionary Accrual Terhadap Earnings Management: Studi Pada Perusahaan Otomotif Yang Terdaftar Di Bursa Efek Indonesia Periode 2012 – 2016," Jurnal Akuntansi Keuangan Dan Manajemen, vol. 1, no. 1, pp. 27-38, 2019, doi: 10.35912/jakman.v1i1.4.

Downloads

Published

2025-11-01

Submitted

2025-02-28

Revised

2025-04-16

Accepted

2025-05-03

Issue

Section

Articles

How to Cite

Roodposhti , S. E. ., Chirani, E., & Mir Bargkar, S. M. . (2025). Development of a Paradigmatic Model of Earnings Management in the Automotive and Parts Manufacturing Industry. Business, Marketing, and Finance Open, 1-12. https://www.bmfopen.com/index.php/bmfopen/article/view/245

Similar Articles

1-10 of 143

You may also start an advanced similarity search for this article.