Journal of Accounting and Management Vision

Journal of Accounting and Management Vision

Investigating the effect of Real and Accrual Earnings Management on Level of Investment growth and Cash Holdings in the Listed Companies of Tehran Stock Exchange

Document Type : Original Article

Authors
Hasan Fatahi 1
Arezoo Ramazani 2
1 Faculty member of the Islamic Azad University Sharekord Unit
2 Noor hedayat institute of Shahrekord
Abstract
The purpose of this research is to investigate the effect of accruals-based earning management on the amount of retained cash and the level of investment growth.For this purpose a sample of 135 companies listed in the Tehran Stock Exchange for the period from 2011 to 2018 was investigated. In order to calculate real earning management, we can use three methods of abnormal operating cash flow, abnormal production cost and discretionary cost reduction. In this research, sales manipulation method was used.The hypothesis was analyzed using multivariate regression analyzed least squares method. The results of the assumption of this research show that the relationship between earning management based on accruals and gains in real earning management the level of investment growth is negative and significant.Also the results indicate that with increasing the management of earning accrued cash holding.
Keywords
Accruals-based earnings management
real earning management
Cash holdings
Level of Investment growth