Title : ( A Study of the Factors Affecting Earnings Management: Iranian Overview )
Authors: Farzaneh Nassirzadeh , Mahdi Salehi , Sayed Mohammad Alaei ,
Abstract
The present study examines the factors affecting earnings management of listed companies in Tehran Stock Exchange. So, the effects of the debt-equity ratio, firm size, managers’ bonus and effective tax rate on earnings management are examined. Totally, 114 listed companies in Tehran Stock Exchange during 2006-2010 are studied. Statistical method used was cross-sectional ordinary least square regression, correlation analysis. The results indicate that there is a significant as well inverse relationship between debt-equality ratio and earnings management. Also, there is a significant and positive relationship between firm size and earnings management. However, there did not found any significant relationship between changes in managers’ bonus and effective tax rate with earnings management.