چکیده:
Review of the literature explains this issue that the companies that manage earnings and have high conservatism, have lower earning quality and by applying conservatism methods, the quality of reported earning becomes lower. Concerning the importance of financial reporting quality and its impact on decision making of the users of financial statements, in this study, the relationship between earnings management and accounting conservatism with the dispersion of profits (as a
measure of earnings quality) have been investigated. The sample consisted of 135 companies listed on the Tehran Stock Exchange during the period 2010-2014. In this study, to measure the earning management, Jones’ modified model and to measure conservatism, Guile and Shine’s model (2000) have been used. Using multivariable regression analysis, the results indicate that earnings management increases profit dispersion. Also the results suggest the negative impact of
conservatism on the dispersion of profit.
خلاصه ماشینی:
The relationship between earning management and earning conservatism with earnings quality (dispersion of profits) in the firms listed in the Tehran Stock Exchange Mohammad DelkhosH (Department of Accounting, Bardaskan Branch, Islamic Azad University.
Concerning the importance of financial reporting quality and its impact on decision making of the users of financial statements, in this study, the relationship between earnings management and accounting conservatism with the dispersion of profits (as a measure of earnings quality) have been investigated.
In this regard, to test the first hypothesis, model 1 is used as follows: Dispit= β0 + β1EMit+ β2SIZEit + β3GROWNit + β4Profitit + εit Disp is the distribution of profit; AEM is accounting earnings management; Size is the logarithm of total assets and is used as the size of the company; Grown is the growth of the company; Profit is the profitability of the company; And subscript i and t denote the company and the year.
In order to test the second hypothesis about the influence of conservative earnings reporting on the distribution of profit, the model 2 is used as follows Dispit= β0 + β1Consit+ β2SIZEit + β3GROWNit + β4Profitit + εit Cons as the amount of earnings conservatism and all other variables are defined as above.
In other words, results of the model also confirm the first hypothesis and show that earnings management reduces earnings quality (increased distribution of profits).