International Journal of Social and Economic Research
  • Year: 2013
  • Volume: 3
  • Issue: 2

An Investigation into the Relationship between Firm Size and Growth Opportunity and Accounting Discretion in the Firms Listed in the Tehran Stock Exchange

  • Author:
  • Hamidreza Vakilifard1, Ahmad Yaghoobnezhad2, Mohsen Dastgir3, Joma Doordi Gorganli Davaji4
  • Total Page Count: 8
  • DOI:
  • Page Number: 204 to 211

1Department of Accounting, Science and Research Branch, Islamic Azad University, Tehran, Iran

2Department of Accounting, Central Tehran Branch, Islamic Azad University, Tehran, Iran

3Department of Accounting, Science and Research Branch, Islamic Azad University, Esfahan, Iran

4Department of Accounting, Science and Research Branch, Islamic Azad University, Tehran, Iran

Online published on 24 September, 2013.

Abstract

Firm size and growth opportunity are of great importance in management, depending on the way they are used in accounting discretion. The present study aims to offer a model indicating the relationship between firm size and growth opportunity and accounting discretion, with emphasis on abnormal accruals and earning smoothing measure. This research employs an applied and correlation method. Upon adopting a coefficient of determination (R2) of 20%, the results point to a positively significant relationship between firm size and index of accounting discretion and a negatively significant relationship between growth opportunity and accounting discretion.

Keywords

Firm size, Firm growth opportunity, Accounting discretion