Earnings management, disclosure of financial information and real financial performance (Evidence from companies in Tehran Capital Market)

Subject Areas :

سید فخرالدین فخرحسینی ¹ (دانشیار، گروه حسابداری، دانشکده مدیریت و حسابداری، واحد تنکابن، دانشگاه آزاد اسلامی، تنکابن، ایران)
میثم کاویانی ² (استادیار، گروه مالی، دانشکده حسابداری و مدیریت، واحد کرج، دانشگاه آزاد اسلامی، البرز، ایران)

Received: 2018-11-24 Accepted : 2022-06-20 Published : 2022-08-16

Keywords: Earnings management, disclosure, True financial performance,

Abstract :

The basis for decision-makers in securities markets is information provided by publishers and intermediaries active in these markets. The use of this information, in other words, the correct decision in the securities market, is possible when the information is timely, relevant, relevant, and complete and comprehensible. The purpose of this paper is to examine the linear relationship between earnings management and the disclosure of financial information with True financial performance (TFP) in listed companies in Tehran Stock Exchange. Based on this, financial information of 94 companies accepted in the capital market of Iran during the period from 2011 to 2016 has been tested. The results showed that earnings management has a positive and significant relationship with asset returns and has no significant effect on return on equity. The results show that there is a non-linear and significant relationship between the disclosure and the True performance of the company, which indicates that necessarily increasing disclosure does not improve the performance of the company.

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