* Department of accounting, Electronic Branch, Islamic Azad University, Tehran, Iran
Online published on 26 May, 2016.
Present paper is an attempt for collecting evidences for managing profit and its contribution to change in shared profit. Dependent variable of this research is the ratio of profit of company equity, discretionary accruals and representative of profit management for computation of which model of Decho et.al based on annual step-wise regression is used. For testing research hypotheses, historical data corresponding to 2009–13 for 97 companies listed in Tehran Stock Market and regression analysis is used. Results reveal that more discretionary accruals lead to lower shared profits. In fact, managers of these companies decide to pay for or increase shared profits when they feel that their profit is not considerably affected by manipulation of accounting method and decrease of shared profit in future is improbable.
profit, profit management, shared profit, policy of profit sharing
