List of Articles Keywords: Monthly Returns of the Company

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  1 - Peer Companies Performance and Earnings Management: The Effect of Capital Market Pressure Peer Companies Performance and Earnings Management: The Effect of Capital Market Pressure
  reza kordestani سیده آمنه جعفری سوق
  10.30495/jdaa.2022.693174
    Abstract Financial analysts and investors use the performance of peer firms for valuation and investment decisions. Since managers know that their performance is compared to peer’s firms, they have enough incentive to earnings manipulation. Therefore, the More

    Abstract Financial analysts and investors use the performance of peer firms for valuation and investment decisions. Since managers know that their performance is compared to peer’s firms, they have enough incentive to earnings manipulation. Therefore, the purpose of the present research is to investigate the relationship performance of peer firms on earnings management. Based on analysis of archival data of 114 firms listed in TSE, the findings show that there is a positive and significant relationship between performance of peer firms and earnings management. That is, the high performance of peer firms leads to increased discretionary accruals. In addition, change in earnings forecast per manager share has a positive and significant relationship with peer firm performance. Also, there is a significant relationship between the criterion of earnings forecast and performance of peer firms. Therefore, managers in response to the performance of peer firms and under the capital market pressure, manipulation of accounting earnings. This study focused more on the impact of peer firms and their performance on the quality of financial reporting. In addition, earnings management studies in the scope of motivation is broaden. Manuscript profile