Presentation of a Model for Measuring Earnings Management in Tehran Listed Firms

Subject Areas : Management Accounting

احمد یعقوب نژاد ¹ , بهمن بنی مهد ² , اعظم شکری ³

1 - ندارد
2 - ندارد
3 - ندارد

Received: 2011-08-11 Accepted : 2011-09-23 Published : 2012-06-09

Keywords: earnings management, Discretionary Accruals, Kasznik Model,

Abstract :

AbstractThe purpose of this study is to investigate whether companies listed on TehranStock Exchange (TSE) conduct earnings management and to examine the effect ofspecific factors on it and present a model based on the effective factors. We tested ourhypothesis using a sample of 648 Firm-year observations across nine Iranianindustries from 2001 to 2008. Kasznik Model was used to calculate the EarningsManagement Index. Our results provide evidence that debt ratio, firm size, changingof CEO, return on assets (ROA), and last year earnings management index positivelyaffect earnings management. However, variables such as tax, ownership structure,type of auditor, changing of auditor and industry do not affect earnings management.