The relationship between product market competition, earnings management and earnings persistence

Subject Areas : مدیریت

leila Masroor ¹ , Akbar Mirzapourbabajan ²

1 - M.A. Student, Department of Management, Qazvin Islamic Azad University, Qazvin, Iran (Correspondence Officer)
2 - Assistant Professor, Department of Management, Qazvin Azad University, Qazvin, Iran

Received: 2020-10-18 Accepted : 2020-10-18 Published : 2019-02-20

Keywords: Earnings Management, Competition in product market, earnings sustainabilit,

Abstract :

The main aim of the present study is to examine the relationship between competition in product market, earnings management and earnings sustainability in companies listed on Tehran Stock Exchange. Statistical population of the present study is consisted of companies listed on Tehran Stock Exchange during the time frame of 2008 to 2014 and sample volume is taken equal to 114 companies by using screening method. In this study, competition in product market was taken as independent variable in order to study its effect on earnings management and earnings sustainability in examined companies. the present study is an applied study in terms of goal of study and in terms of method of study is a descriptive – correlation study. On the other hand, the present study is an ex post facto study (semi-empirical), which means, it is conducted on the basis of past and historical data analysis (financial statements of companies). In addition, this study is based on panel data analysis as well. In this study, in which panel data was used, results obtained from firms data analysis by using multiple-variable regression at 95% confidence indicated that there is a direct and reverse significant relationship between competition in product market with earnings management and earning sustainability, respectively