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The effect of financial distress on earnings management and unpredicted net earnings in companies listed on Tehran Stock Exchange
| Content Provider | Semantic Scholar |
|---|---|
| Author | Ranjbar, Samin Amanollahi, Gholamreza Farsad |
| Copyright Year | 2018 |
| Abstract | Article history: Received: April 27, 2018 Received in revised format: June 21, 2018 Accepted: June 25, 2018 Available online: June 25, 2018 Many financial crisis are related to public corporations, which are increasing. Many investors and creditors are having trouble predicting a financial crisis, especially when managing profits. Recent studies identify the factors associated with earnings management to determine the relationship between the factors and manipulated profits. In order to reduce the risk of financial crises and to help investors avoid large losses in the stock market, it is necessary to develop a model for predicting profit management. In addition, for traditional auditing technologies, it is also difficult to limit the time, human resources, costs, and the impact of abnormal behaviors on complex and large financial information. Therefore, developing a prediction model for managing profits for auditors is useful in identifying the degree of manipulation in financial statements. This paper examines the effect of corporate financial distress on unpredicted net earnings and corporate profits on accepted companies in Tehran Stock Exchange over the period 2010-2015. The models used to test the hypotheses of the research are linear regression using panel data. The results show that the coefficients of the financial distress, institutional ownership, annual sales growth, company loss, company size, the company's market share and firm fixed costs are statistically meaningful. In other words, these independent variables influence on unforeseeable profit and earnings management. © 2018 by the authors; licensee Growing Science, Canada |
| Starting Page | 933 |
| Ending Page | 938 |
| Page Count | 6 |
| File Format | PDF HTM / HTML |
| DOI | 10.5267/j.msl.2018.6.015 |
| Volume Number | 8 |
| Alternate Webpage(s) | http://growingscience.com/msl/Vol8/msl_2018_73.pdf |
| Alternate Webpage(s) | https://doi.org/10.5267/j.msl.2018.6.015 |
| Language | English |
| Access Restriction | Open |
| Content Type | Text |
| Resource Type | Article |
