The Role of CEO's Pressure in Earnings Management Decisions with an Emphasis on Personality Characteristics of Financial Managers

Profit management has always been considered one of the accounting problems and researchers have made many efforts to solve it. But considering the persistence of the problem, it seems necessary to consider other approaches to solve it. In this article, profit management decisions are considered with three behavioral approaches, and the role of CEO pressure in profit management decisions is investigated with an emphasis on the personality characteristics of financial managers in a statistical sample of ۶۵ financial managers of listed companies. The current research is applied in terms of purpose and correlational in terms of descriptive method. CEO's pressure as an independent variable and profit management decisions as a dependent variable and personality traits of emotional intelligence, narcissism, and non-adherence to ethics as moderating variables, and age, gender, education, and experience as control variables of the financial manager. The targeted sampling method was used from the available samples and regression was used to test the hypothesis. The results of this research show that there is a positive and significant relationship between CEO pressures on profit management decisions. However, there is no significant relationship between the CEO's pressure on profit management decisions with the two approaches of compliance and non-compliance with accounting standards. Also, the modulating factors of personality characteristics, except for emotional intelligence, did not have a significant effect on profit management decisions. Therefore, it seems that in Iran, since the financial managers are chosen by the CEOs of the companies, the managers dominate them in order to achieve their goals. In such circumstances, financial managers do not consider personality traits and accounting standards in profit management decisions in order to maintain their interests and job position and improve their organizational status.

کلیدواژه ها:

Personality traits ، CEO pressure ، Emotional intelligence ، Narcissism ، Profit management.