In this study, earnings quality in three levels of distress, bankruptcy and financial health of listed companies in Tehran Stock Exchange, has been studied and compared. Classification of financial position companies, according to Altman adjusted model and earnings quality by four separate: accruals quality, earnings persistence, earnings predictability, and earnings smoothness is measured. The main period of study, 1385 to 1389, and the number of samples110 With 1330 observation in three groups of Bankrupt, Distressed and healthy Companies.to evaluate the mean difference of three groups using non-parametric analysis of variance.
Research findings show that the average variable both earnings persistence and earnings smoothness in the three groups bankrupt, distressed and healthy, there are significant differences. However, no Significant difference between both average variable accruals quality and earnings predictability in three groups there.
The bankrupt firms have the lowest level of earnings quality and Healthy firms have the highest level of earnings quality. And financially distressed and bankrupt companies also more than healthy companies, their Earnings have been manipulated.