profit management

Open Access Article

1 - Effective Factors on Relation Between Smoothing of Gain and Companies' Profitability
Hossein Etemadi Mohammad Ali Javadi Mazdeh

Most managers are not familiar with smoothing benefits as theoretical subject; and perhaps they using controlling economic and commercial activities try to increase or decrease profits in order to create positive results without the knowledge of the possible negative re More

Most managers are not familiar with smoothing benefits as theoretical subject; and perhaps they using controlling economic and commercial activities try to increase or decrease profits in order to create positive results without the knowledge of the possible negative results. There are many advantages of incoming smoothing, in addition Researchers considers many factors that cause effect on smoothing behavior. This article is intended to identify and distinguish smoothing and non-smoothing companies among companies which are currently listed in Tehran Securities Exchange from 1999 until 2009, and also plans to determine effective factors on smoothing behavior. The Results show that there is a positive relationship between profitability rate and the possibility of smoothing and No relationship between smoothing behavior and other independent variables does not exist Manuscript profile

Open Access Article

2 - Testing the effectiveness of psychological indicators with a perceptual bias approach on a variety of earning management
narges mohseni hamidreza kordlouie mohammadhamed khanmohammadi shadi shahverdiani

In the present study, the relationship between perceptual errors and earnings management motivations among managers in the fields of investment, accounting, auditing using the opinions of ten experts and 260 questionnaires from the mentioned sectors, the proposed model More

In the present study, the relationship between perceptual errors and earnings management motivations among managers in the fields of investment, accounting, auditing using the opinions of ten experts and 260 questionnaires from the mentioned sectors, the proposed model was tested, which led to determining and evaluating the optimal model. To be placed. This study evaluated and ranked the different dimensions of perceptual error factors affecting different types of earnings management. The results indicate the impact of 65 perceptual errors on the role of types of earnings management in identifying the optimal model and the significance of the relationship between perceptual errors and all types of earnings management. Efficient and opportunistic was determined as the optimal model that the direct channel of perceptual error affects the management of real and accrued earnings and effective profit management and opportunistic management. Manuscript profile

Open Access Article

3 - Examining and explaining the relationship between internal audit and profit management
omran bamari mohammadreza shoorvarzi zahra noori

10.30495/jma.2023.22624

The financial scandals that rocked stock markets around the world in the late 1990s and early 2000s severely undermined confidence in the financial reporting process, and thus the financial markets. The focus of internal audit, which was traditionally on operational con More

The financial scandals that rocked stock markets around the world in the late 1990s and early 2000s severely undermined confidence in the financial reporting process, and thus the financial markets. The focus of internal audit, which was traditionally on operational controls and risks and assisting management in decision-making, brought to the improvement of the corporate governance process and detection of fraud in management and inappropriate accounting practices (including profit management). This study examines the issue that with the approval of the internal control directive and the requirement to establish an internal audit unit in business units in Iran since 2013, does internal audit lead to a decrease in profit management or not? The time of this research is between 2007 and 2016, which includes 2 periods, 5 years before the requirement of internal audit and 5 years after that for companies admitted to the Tehran Stock Exchange, which is done using the multivariate regression analysis method. It was tested using the F test of Limer and Hausman with the help of Eviews software. In this research, adapted from McNichols (2008), discretionary income used as a measure of earnings management. In addition, the data of 109 companies have been used to test the hypothesis. The results of the coefficients from the hypothesis test showed that the implementation of internal audit had a significant and negative effect on profit management.  Manuscript profile

Open Access Article

4 - Investigate earnings management at the sensitive earnings amounts’ threshold of companies with high financial leverage
SARA shafiee hamidreza kordlouie shadi shahverdiani maziyar ghasemi

10.30495/jma.2022.20206

The purpose of this study is to investigate real earings management on the threshold of sensitive amounts of earnings in companies suspected of earnings management and in terms of high financial leverage, which was conducted among 148 listed companies and their financia More

The purpose of this study is to investigate real earings management on the threshold of sensitive amounts of earnings in companies suspected of earnings management and in terms of high financial leverage, which was conducted among 148 listed companies and their financial information between 1392 and 1399. In this study, abnormal production costs and abnormal discretionary expenses for companies suspected of earings managing whose financial leverage was above average were examined in the three thresholds of zero- earnings, previous earnings and forecasted earnings. The results show that in all three profit thresholds, when the financial leverage is more than average, then this leverage has a negative and significant effect on abnormal production costs and abnormal discretionary expenses. Only in abnormal production costs of the previous earning threshold that no significant impact has been identified. Manuscript profile

Open Access Article

5 - Presenting the developed model of Benish by using tunneling phenomena based on artificial neural network technique and particle swarm optimization algorithm to identifying profit manipulating companies
Farhad Azadi Mehrdad GhanbarI Babak Jamshidi navid Javad Masodi

Today, profit rates and the possibility of managing and manipulating the profits are clear to all, and researchers have always sought solutions to remove the uncertainties facing investors and stakeholders when making their financial decisions. To clarify users' decisio More

Today, profit rates and the possibility of managing and manipulating the profits are clear to all, and researchers have always sought solutions to remove the uncertainties facing investors and stakeholders when making their financial decisions. To clarify users' decision path of financial data users, Beneish (1999) has developed a profit-management predicting model that has yielded different results in different societies. Thus, this article aims to optimize and localize Beneish’s model by adding the Tunneling variable to Beneish’s variable and using a modern neural network and particle swarm algorithms. The statistical research population consisted of 196 companies listed at the Tehran Stocks Exchange from 2014 to 2019. The research method was a descriptive-library method in which the variables are interrelated through the causal-correlational method. From an objective point of view, it is an Ex-Post Facto research design. To analyze the data, the regression method and artificial neural and the PSO algorithms were used. The model analysis results suggested that all financial ratios had significant effects on Beneish’s profit management, as the Tunneling phenomenon and the financial leverage had the highest and lowest effects on predicting Beneish’s profit management, respectively. Manuscript profile

Open Access Article

6 - Investigation Institutional Investors Effect on Company Value Based on Managers Opportunities Behavior
Hamidreza Vakilifard Foad Ghaderi

This paper examines the institutional investors effect on Company Value Based profit management perspective. The paper result show that companies group in growth will significantly to profit management.

This paper examines the institutional investors effect on Company Value Based profit management perspective. The paper result show that companies group in growth will significantly to profit management. Manuscript profile

Open Access Article

7 - The relationship between profit management and the performance Of companies studied in Bourse securities of Tehran
mohammadreza javaheri Majid Zanjirdar

Many research Findings emphasis that investors in their investments decisions will prefer smooth profit with low fluctuation. In this regards managers will try to manage the benefit and its growth. Managers either with tampering the information's for the sake of their b More

Many research Findings emphasis that investors in their investments decisions will prefer smooth profit with low fluctuation. In this regards managers will try to manage the benefit and its growth. Managers either with tampering the information's for the sake of their benefit or transferring and reporting confidential information about management. The study tries to investigate the effect of benefit management by using negative correlation between the optional obligatory items change and anticipated changes of benefit.  The essential performance indicators which include cash flow fund, earning per share, liability items and dividend yield have been considered and these components are considered as efficiency indicators in this research.The statistical population included all the listed companies in securities bourse in Tehran during 1384-1392. Using systematic call-off sampling method 89 companies was selected as the sample size. The results showed that there was a significant relationship between the profit management and companies performance. The profit management is also effective in forecasting future cash fund, in forcing solidarity between running and future yield. Manuscript profile

Open Access Article

8 - The Effect of Organizational Culture on the Relationship between Earnings Management and the Readability of Financial Statements
محدثه ریاحی نژاد افسانه توانگر

10.30495/faar.2021.687681

Intercultural research in societies showed that the development and evolution of accounting in any society depends on environmental and social factors of that society. Any insight into how values can be impacted through accounting behavior and ultimately the impact of More

Intercultural research in societies showed that the development and evolution of accounting in any society depends on environmental and social factors of that society. Any insight into how values can be impacted through accounting behavior and ultimately the impact of financial disclosure is important to ensure comparability of financial reporting. For this reason, in this study, the effect of organizational culture characteristics on the relationship between profit management and readability of financial reports in companies listed on the Tehran Stock Exchange during the years 2011 to 2018 is investigated. To measure the organizational culture variable, the Globe questionnaire, the readability variable of financial reports, Fogg index and the profit management variable, Kazink model have been used. The results show that futurism, gender equality, assertiveness, extra-group collectivism, intra-group collectivism and altruism affect the relationship between earnings management and the readability of financial statements. The effect of the control variable was positive and insignificant company size and positive and significant financial leverage. Manuscript profile

Open Access Article

9 - Company Growth and Performance and Seasonal Profit Management Tests
زهرا لشگری محمد مسگر

10.30495/faar.2022.691694

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 More

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. Manuscript profile

Open Access Article

10 - To Identify Important Factors That Affect the Management of Real Interest and Commitment in the Enterprise Market with Models, Bayesian Approach
mehrnoosh ebrahimi farhad hanifi zoherh hajiha Shadi Shahverdiani Hamid Reza Kordloui

Empirical facts derived from research done on the effects of earnings management of listed companies shows that the economy of earnings management has always impose huge costs on economic, social and political experts provide organizations of all sizes. The role of cris More

Empirical facts derived from research done on the effects of earnings management of listed companies shows that the economy of earnings management has always impose huge costs on economic, social and political experts provide organizations of all sizes. The role of crisis management on financial profit represents earnings management considers failure prediction models. The present study considers this failure in identifying explanatory variables and experimental model design, factors that this research is trying to improve.In this study, 13 variables affecting real earnings management and 56 variables affecting accrued earnings management were included in the model. According to the output of the results, it can be said that profit management in Iranian stock companies is a multidimensional problem; Because the variables related to profitability, liquidity and debt index affect this type of management.The multidimensionality of the factors influencing this process will require coordination between financial and capital market policymakers to reduce the effects of adjusting and reducing earnings management in the stock market. Manuscript profile

Open Access Article

11 - The relationship between real activity-based earnings management and tax strategies with an emphasis on the role of agency costs
Rana Jalilpour Parniya Yunus Badavranhandi Shahla Abbaszadeh

In the current research, the relationship between profit management based on real activities and tax strategies is investigated, emphasizing the role of agency costs. This research is practical in terms of its purpose, and from the point of view of correlation methodolo More

In the current research, the relationship between profit management based on real activities and tax strategies is investigated, emphasizing the role of agency costs. This research is practical in terms of its purpose, and from the point of view of correlation methodology, it is causal type (post-event). The statistical population of the research is all the companies admitted to the Tehran Stock Exchange, and using the systematic elimination sampling method, 135 companies were selected as the research sample in the 6-year period between 2013 and 2018. The method used to collect information is a library, and the relevant data for measuring the variables have been collected from the Kodal website and the financial statements of the companies. Stata software was used to test research hypotheses. The results of the research show that profit management based on real activities has an inverse relationship with the effective tax rate. However, it is directly related to the difference between accounting profit and taxable profit. The ratio of operating expenses to net sales has an inverse effect on the relationship between earnings management based on actual activities and the effective tax rate. The interaction of free cash flow and Qotubin ratio does not affect the relationship between earnings management based on real activities and effective tax rate. Manuscript profile

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