Journal of Accounting and Management Vision

Journal of Accounting and Management Vision

The relationship between real and accrual earning management and managers' conservatism

Document Type : Original Article

Authors
saeed jabbarzadeh kangharloei 1
jamal bahri sales 1
Shabnam Balazadeh gharebaghi 2
tarlan aghazadeh 2
1 Associate Professor of Accounting Department, Urmia Branch, Islamic Azad University, Urmia, Iran.
2 PhD student in accounting, Urmia Branch, Islamic Azad University, Urmia, Iran.
Abstract
The purpose of this research is to determine the relationship between real profit management and accrual profit management with accounting conservatism. In this research, accounting conservatism has been measured using the model of Khan and Watts (2009). Real profit management has been measured using Roy Chowdhury's (2006) model integrated index. The current research is applied in terms of purpose and a posteriori in terms of methodology. The statistical population is the companies admitted to the Tehran Stock Exchange and 130 companies have been included in the statistical sample with the purposeful sampling method. The research period is 1994-1998. Regression analysis has been used to test the hypotheses. The results show that real earnings management has an inverse relationship with accounting conservatism, but accrual earnings management has no significant relationship with accounting conservatism.
Keywords
Real profit management
accrued profit management
conservatism
conditional conservatism