Accounting and Auditing Research

Accounting and Auditing Research

Investigation the relationship between real earnings management and accounting earnings management from income smoothing perspective

Document Type : Original Article

Authors
Naser Partovi
Elham Abshirini
10.22034/iaar.2013.104568
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.
Keywords
Earnings management
Real earnings management
Accounting earnings management
Discretional accruals
Accounting and Auditing Research
Volume 5, Issue 17
Spring 2013
Pages 144-160