The Relationship Between Earnings Management and Firm Performance in the Companies Listed in Tehran Stock Exchange: The Function of Firm Size

In the process of earnings management, the financial reports are changed in order to misguide shareholders about the firm basic performance, or to affect the contractual outcomes associated with reported accounting numbers, which can be positive or negative for firm performance under some conditions...

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Main Authors: Simin Mojoodiniay Kasmaei, Mohammad Javad Tasaddi Kari
Format: Article
Language:English
Published: Iranian Association for Energy Economics 2023-02-01
Series:Environmental Energy and Economic Research
Subjects:
Online Access:https://www.eeer.ir/article_161621_f59f2150ac61e1651a52e2e784ccb630.pdf
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author Simin Mojoodiniay Kasmaei
Mohammad Javad Tasaddi Kari
author_facet Simin Mojoodiniay Kasmaei
Mohammad Javad Tasaddi Kari
author_sort Simin Mojoodiniay Kasmaei
collection DOAJ
description In the process of earnings management, the financial reports are changed in order to misguide shareholders about the firm basic performance, or to affect the contractual outcomes associated with reported accounting numbers, which can be positive or negative for firm performance under some conditions. In the present study, it was aimed to determine the relationship between earnings management and firm performance. The research population included the present listed companies on the Tehran Stock Exchange during 2013-2018. After screening, data related to 105 companies were analyzed through panel approach. No remarkable relationship was discovered between earnings management and firm performance based on the obtained results. Moreover, firm size indicated a significant relationship with performance. It seems that in the conditions of financial crisis and the instability of economic structures, some managers were interested in earnings management, which was implemented through various approaches in the firm ultimately affecting its performance. However, such an effect was not significant in the current study.
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series Environmental Energy and Economic Research
spelling doaj-art-ea3b2313aae84f6381a30adb640661a42025-08-20T02:36:39ZengIranian Association for Energy EconomicsEnvironmental Energy and Economic Research2538-49882676-49972023-02-017111010.22097/eeer.2022.362492.1264161621The Relationship Between Earnings Management and Firm Performance in the Companies Listed in Tehran Stock Exchange: The Function of Firm SizeSimin Mojoodiniay Kasmaei0Mohammad Javad Tasaddi Kari1Faculty of Management and Accounting, Islamic Azad University, Rasht, IranFaculty of Management and Accounting, Islamic Azad University, Rasht, IranIn the process of earnings management, the financial reports are changed in order to misguide shareholders about the firm basic performance, or to affect the contractual outcomes associated with reported accounting numbers, which can be positive or negative for firm performance under some conditions. In the present study, it was aimed to determine the relationship between earnings management and firm performance. The research population included the present listed companies on the Tehran Stock Exchange during 2013-2018. After screening, data related to 105 companies were analyzed through panel approach. No remarkable relationship was discovered between earnings management and firm performance based on the obtained results. Moreover, firm size indicated a significant relationship with performance. It seems that in the conditions of financial crisis and the instability of economic structures, some managers were interested in earnings management, which was implemented through various approaches in the firm ultimately affecting its performance. However, such an effect was not significant in the current study.https://www.eeer.ir/article_161621_f59f2150ac61e1651a52e2e784ccb630.pdffirm performanceearnings managementfirm size
spellingShingle Simin Mojoodiniay Kasmaei
Mohammad Javad Tasaddi Kari
The Relationship Between Earnings Management and Firm Performance in the Companies Listed in Tehran Stock Exchange: The Function of Firm Size
Environmental Energy and Economic Research
firm performance
earnings management
firm size
title The Relationship Between Earnings Management and Firm Performance in the Companies Listed in Tehran Stock Exchange: The Function of Firm Size
title_full The Relationship Between Earnings Management and Firm Performance in the Companies Listed in Tehran Stock Exchange: The Function of Firm Size
title_fullStr The Relationship Between Earnings Management and Firm Performance in the Companies Listed in Tehran Stock Exchange: The Function of Firm Size
title_full_unstemmed The Relationship Between Earnings Management and Firm Performance in the Companies Listed in Tehran Stock Exchange: The Function of Firm Size
title_short The Relationship Between Earnings Management and Firm Performance in the Companies Listed in Tehran Stock Exchange: The Function of Firm Size
title_sort relationship between earnings management and firm performance in the companies listed in tehran stock exchange the function of firm size
topic firm performance
earnings management
firm size
url https://www.eeer.ir/article_161621_f59f2150ac61e1651a52e2e784ccb630.pdf
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