Abstract
The purpose of this paper is to investigate the relation between real earnings management and accounting earnings management to smooth earnings. Cash flow from operations as proxy variable of real earnings management and discretional accruals as proxy variable of accounting earnings management has been employed.In this paper a sample data of 110 listed companies in Tehran Stock Exchange during 1380-1387 has been used. To test the hypotheses, proxy variables of real and accounting earnings management estimated by Roychowdhury(2006) and Kothari et.al(2005)’s model has been used. The results show that managers use the two earnings management to smooth earnings and real and accounting earnings management occure simultaneously.
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