aDepartment of Accounting, Science and Research Branch, Islamic Azad University, Tehran, Iran
bAssociate Prof. in Accounting, Faculty of Economic and Management, Science and Research Branch, Islamic Azad University, Tehran, Iran
Online published on 6 August, 2014.
This paper examines the influence of ownership structure on earnings management of firms listed on the Tehran Stock Exchanges. The research sample consisted of 60 participants during the period 2003 to 2012. The main hypothesis of this research is based on the relationship between ownership type and earnings management. Variability of earnings over cash flows is as a proxy for earnings management. The method of data analysis used was the multivariate regression technique based on the ordinary least squares assumptions. The results reveal that there is a statistically significant relationship between the ownership type and earnings quality at the 95 percent confidence level and state owned firms are bigger in size and appear more profitable based on reported earnings, The empirical findings showed that public firms manage earnings more than private firms.
Earnings management, ownership structure, Variability of earnings
