The current study aims to examine the effective variables an earning management in Tehran Stock exchange during 2004-2010. In this research the discretionary accruals from modified Jones model to determine earning management in the firms have been used and auditor change and type of auditor (for examining accounting quality), type of ownership, number of main shareholders, percentage of ownership for largest shareholder, percentage of ownership main shareholders (for examining corporate governance), incentives of earning management (number of employee, equity-debt ratio, leverage and tax) and also financial ratios (performance coefficient, changes in net income, gross income to sale ratio and current ratio), used firm size and type of industry variables have been considered as control variable. To analyze data the multiple regression and backward regression as well as interaction regression have been used cross-sectionally and collectively. Results of performed tests document that there would be a negative relationship between performance coefficient with earnings management and a significant positive relationship between gross income to sale, current ratio, changes in net income and firm size with earning management.

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