Investigating how Managers Authorities Use Methods and the Effect of Earnings Quality to Future Profitability (The firms listed on the Tehran Stock Exchange)

Document Type : Original Article

Authors

10.22034/iaas.2013.105427

Abstract

In this study investigates earnings management and the effect of earnings quality on the reporting future profitability in Firms Listed at the Tehran Stock Exchange during 1385 to 1389. Accrual is considered as measure of earnings management. Accounting-based earnings attributes are: accruals quality, earnings persistence, earnings predictability, and earnings smoothness. Operating cash flow provides a picture of the future profitability of the firm. The results of testing hypothesis of research for 198 firms listed at the Tehran Stock Exchange show that efficient use of earnings management. The negative impact for the earnings quality on future profitability verified and therefore can be said that earnings management performs better than earnings quality in predicting future profitability

Keywords

Accounting and Auditing Studies
Volume 2, Issue 8
January 2020
Pages 20-39

Files

Share

How to cite

Statistics