*Associate Professor, Department of Accounting, Mashhad Branch, Islamic Azad University, Mashhad, Iran
**M.A. Student of Accounting, Hakiman University of Bojnourd, Iran
Online published on 5 September, 2015.
The main purpose of this study is to investigate the relationship between product market competition and forms of earnings management (accrual-based and real activities manipulation). Thus, the data of 135 firms listed in Tehran Stock Exchange over the 2010 to 2014 period and linear regression method are used. The results indicated that using two criteria of abnormal levels of operational cash flows and abnormal production costs, real activities manipulation has a direct significant relationship with industry competition and with discretionary abnormal costs, and does not have a significant relationship with industry competition. Meanwhile, industry competition will increase accrual-based earnings management.
Product market competition, earnings management, discretionary accrual-based earnings management, real activities manipulation
