Company Growth and Performance and Seasonal Profit Management Tests

Subject Areas :

زهرا لشگری ¹ , محمد مسگر ²

1 - گروه حسابداری،واحدتهران مرکزی،دانشگاهآزاداسلامی،تهران،ایران
2 - گروه حسابداری،واحدتهرا ن مرکزی،دانشگاه آزاداسلامی،تهران،ایران

Received: 2022-01-17 Accepted : 2022-03-19 Published : 2022-05-22

Keywords: company performance, Keywords: Company Growth, Seasonal Profit Management, Jones Model,

Abstract :

Abstract Jones model is used in a wide range of theoretical foundations in accounting and finance to test earnings management based on optional accruals. These theoretical foundations include studies examining evidence on earnings management for company-specific events (e.g., managers' bonus contracts and debt contracts). The purpose of this study is to investigate the effects of the growth and performance variables of the company on the quarterly earnings management test in companies listed on the Tehran Stock Exchange during the years 2009 to 1398. A screening method was used for sampling and a total of 74 companies (3256 chapters - companies) were selected. In this study, company growth and performance indicators are considered as independent variables to examine their impact on profit management. In this study, hypotheses were tested by multiple linear regression model at 95% level using EViews 8 software. The results showed that the growth and performance indicators of the company have an effect on the seasonal profit management test. These results also showed that the virtual indicators of the company's growth and performance decile have a non-linear relationship with the seasonal profit management test. The results show that the Jones-type optional accrual models that are commonly used in seasonal earthquakes are not sufficiently controlled for accruals that occur naturally due to the growth of the company, as well as the lack of control over the effects of growth and The company's performance on accruals leads to incorrect acceptance in earnings management tests. As a result, this research can show great power in quarterly reports where maples are looking for earnings management, and also these findings have important implications for the use of optional accrual models in earnings management research.

References:

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