The investigation of the relationship between discretionary accruals, growth, and future firm performance in listed firms at Tehran Stock Exchange (TSE)

In this research, an analysis on the relationship between Accruals, Sale Growth and future performance in Listed Firms at TSE was conducted. The purpose of this research is to study the relationship between Accruals and future firm performance in the companies with high Sale Growth and low Sale Growth. In order to measure the Accruals, the modified model of Jones and to measure the future performance, two ratios of Return on Assets (ROA) and Return on Stock(R) were used. In this research, four variables of company size, financial leverage, profitability and management efficiency which were expected to have impact on relationship between independent and dependent variables were controlled. The sample under consideration is 122 companies active in Tehran Stock Exchange. The time scope of research includes a five-year period based on financial statements for 2007 to 2011 of the companies under consideration. In order to test hypothesizes, the Pearson Correlation test, Spearman and Multi-variable Linear Regression test were used. The results of research indicate the lack of presence a significant relationship between the Accruals with Return on Assets and Return on Stock in the companies with a high Sale Growth and in companies with a low Sale Growth.