Authors : Reza Gholami Jamkarani and Tayebeh Hozi
Abstract: Managers try to manipulate the accounts through accounting methods (such as the method of accrual-based earnings management) in order to present a plausible and compelling picture of the current financial performance of their firms. The present study aims to investigate whether the accrual-based earnings management has any effect on the future financial performance of the firms. Hence, in order to examine this matter, 120 firms listed on Tehran Stock Exchange (TSE) during the period from 2006-2013 were studied. In order to evaluate the quality of accruals, Dechow Model presented in 2002 was used. For testing the hypotheses, a panel data regression model was employed. The results show that there is a significant relationship between accrual-based earnings management and future financial performance.
Reza Gholami Jamkarani and Tayebeh Hozi, 2016. Relationship Between the Accrual-Based Earnings Management and Future Financial Performance. International Business Management, 10: 1013-1019.