The Analysis of the Relationship between Real Earning Management and Information Efficiency in the Accepted Companies in the Tehran Stock Exchange

Abstract

Most of the researches performed at the field of earning management were with accrual-based, and the relation to other variables with this analysis approach has been analyzed and identified and few studies have been conducted with the approach of the actual items. In this article, the researcher analyzes real earning management through sales and administration expenses, and long lived assets with administrational efficiencies towards signaling like 30-day and 60-days efficiency. Research’s method is post-occurrence-correlation which utilizes multiple regressions test for the sake of hypotheses test. Research’s results are emblematic of existent relation between earning management’s 30-day-information-efficiency, however, no relation has been observed with 60-day-efficiency.

Keywords: Information Efficiency, Real Earning Management, Administrational and Sales Expenses, Long-term Assets, Production Expenses and Tehran Stock Exchange