Expansion of Financial Distress Modeling Using Corporate Earnings Management in the Iran's Economic Environment

Subject Areas : Labor and Demographic Economics

Abbas Ramezanzadeh Zeidi ¹ , Khosro Faghani Makrani ² , Ali jafari ³

1 - PHD Student of Accounting, Sari Branch, Islamic Azad University, Sari, Iran
2 - Associate Professor of Accounting, Sari Branch, Islamic Azad University, Sari, Iran
3 - Assistant Professor of Accounting, Sari Branch, Islamic Azad University, Sari, Iran

Received: 2019-09-23 Accepted : 2019-09-23 Published : 2019-08-23

Keywords: Real Earnings Management, G33, JEL Classification: M41, G17. Keywords: Accounting Variables, Financial Distress Prediction Model (FDP),

Abstract :

The purpose of this study is to provide a model for financial distress predicting with real earnings management.So the redesignthe financial distress prediction model of Altman (1983) with the real earnings management variable as a predictor variable, the performance of the unadjusted model and the adjusted model in predicting of financial distress among companies accepted in the Tehran Stock Exchange was compared.The statistical sample consists of 179 Companies during the years 2008- 2017.Data analysis and hypothesis testing were performed using multiple logistic regression.The results show that the overall accuracy of the adjusted model is higher than the unadjusted model.

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