Abstract
The main purpose of this research is to analyze the effect of business diversity on the relation between profit sustainability, real earnings management and commercial credit in companies of Securities and Exchange Organization of Iraq. In this research, dependent variable is business credit which is calculated through dividing trade payable accounts of the company on the total asset (Petersen and Rajan, 1997; Giannetti et al., 2011) the independent variables are profit sustainability and real earnings management; in order to calculate profit sustainability the Kormendi and Lipemodel has been utilized while for calculating real earnings management the model that already has been used. The research data has been gathered by using a sample made up of 35 companies during 2011-2016. The research hypotheses were analyzed by hybrid data in SATA14 application. The results indicate that the modular effect of business diversity on the relation of profit sustainability and business credit is positive and meaningful, and the modular effect of business credit on the relation between real profit management and business credit is not meaningful.
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