The relationship between earning management and earning conservatism with earnings quality (dispersion of profits) in the firms listed in the Tehran Stock Exchange

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. Concerningthe 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 ameasure of earnings quality) have been investigated. The sample consisted of 135 companies listed on the Tehran Stock Exchange during the period 2010-2014. Inthis study, to measure the earning management, Jones’ modified model and to measure conservatism, Guile and Shine’s model (2000) have been used. Usingmultivariable regression analysis, the results indicate that earnings managementincreases profit dispersion. Also the results suggest the negative impact of conservatism on the dispersion of profit.

کلیدواژه ها:

Earnings management ، accounting conservatism ، accruals ، earnings quality