aAssociate Professor, Department of Accounting, Mashhad Branch, Islamic Azad University, Mashhad, Iran
bM.A. Student of Accounting, Department of Accounting, Mashhad Branch, Islamic Azad University, Mashhad, Iran
Online published on 4 February, 2015.
Several studies have indicated that managers for various reasons, attempt to manipulate earnings. Due to consequent problems of information asymmetry caused by earnings management, which can reduce shareholder value, both market participants and policy makers are concerned about earnings management. Managers have two basic ways to manage earnings. They can manipulate earning by changing level and nature of activities or with selecting different accounting policies. In this study, emphasize is on relationship between short-term debts and accruals-based earnings management (unrelated to performance). Research sample includes 110 firms listed in Tehran Stock Exchange during periods of 2009 to 2013. And for processing and testing hypotheses, panel data regression and generalized least squares estimation method is used. Results indicate that relationship between short-term debt (short-term debt to total debt ratio) and accruals-based earnings management in firms listed in Tehran Stock Exchange.
Short-term debt, monitoring, agency costs, accruals-based earnings management, Tehran Stock Exchange
