Abstract
The purpose of this study is to investigate the effect of the global financial crisis on earnings management of listed companies in Tehran Stock Exchange and as evidence from of the products of petroleum and chemical industry. The present study is a descriptive-correlation research based on the nature of the data, a quantitative and an applied research based on the goals. Statistical population of this research were active companies in the field of petroleum and chemical listed in Tehran Stock Exchange in the period from 2008 to 2012 and Due to being limited the statistical population, purposive sampling method was used and twenty eight active companies in field of petroleum petrochemicals were selected as sample. In order to illustrate the explanatory power of explanatory variables, the adjusted coefficient of determination was used and in order to examine the significance of variables and the overall adequacy of model, t-statistic and the F-statistic Fisher were used respectively. Also, Statistical analysis was performed using Excel and E-views software’s. The results of this study showed that there is a significant relationship between the size of the company and the management of profit in the global financial crisis. There is a significant relationship between profitability index of company and earnings management in the global financial crisis. There is a significant relationship between sale growth and profit management in global financial crises.
Highlights
Earning management is one of the controversial and attractive issues in accounting researches
The results of this study show that corporate governance variables have no affect on quality of earnings expected by management of the company accepted in the Tehran Stock Exchange
According to the significant level of t-statistic, variable of company size on earning management (0.015), due to being lower than 5% error level, we can reject H0 hypothesis by 95% confidence and state that there is a significant relationship between company size and earnings management during the global financial crisis
Summary
Earning management is one of the controversial and attractive issues in accounting researches. The required data for decision-making is a very complex issue because its diverse range of users, such as investors (since you need to know the profitability and stability of the company before investing in it), managers (need for knowledge of their company's financial situation), banks and funders (the need to inform the company's ability to repay the loan) require various information [1,2,3]. The required data for decisionmaking is a very complex issue because its diverse range of users, such as investors (since you need to know the profitability and stability of the company before investing in it), managers (need for knowledge of their company's financial situation), banks and funders (the need to inform the company's ability to repay the loan) require various information [9,10]. The main problem is that why managers want to manipulate earnings, how to manage their benefits and what are consequences of such behavior?
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