Effective Factors on Relation Between Smoothing of Gain and Companies' Profitability

Subject Areas : Management Accounting

Hossein  Etemadi ¹ (ندارد)
Mohammad Ali  Javadi Mazdeh ² (نویسنده مسئول و طرف مکاتبه)

Received: 2009-08-06 Accepted : 2009-11-11 Published : 2009-10-23

Keywords: Smoothing Profit, Profitability, Profit Management,

Abstract :

Most managers are not familiar with smoothing benefits as theoretical subject; and perhaps they using controlling economic and commercial activities try to increase or decrease profits in order to create positive results without the knowledge of the possible negative results. There are many advantages of incoming smoothing, in addition Researchers considers many factors that cause effect on smoothing behavior. This article is intended to identify and distinguish smoothing and non-smoothing companies among companies which are currently listed in Tehran Securities Exchange from 1999 until 2009, and also plans to determine effective factors on smoothing behavior. The Results show that there is a positive relationship between profitability rate and the possibility of smoothing and No relationship between smoothing behavior and other independent variables does not exist