University of Isfahan Journal of Asset Management and Financing 2383-1189 5 3 2017 10 23 Investigating the Relationship between Managerial Optimism and Earnings Smoothing in Companies Listed in Tehran Stock Exchange Investigating the Relationship between Managerial Optimism and Earnings Smoothing in Companies Listed in Tehran Stock Exchange 77 88 21186 10.22108/amf.2017.21186 FA Mahmood Yahyazadeh Far Professor of Finance at Business Administration Department, University of Mazandaran, Faculty of Economics and Administrative sciences Shahaboldin Shams AssistantProfessor of Finance at Business Administration Department University of Mazandaran, Faculty of Economics and Administrative sciences Maryam Naderi Master of Business Administration, University of Mazandaran, Faculty of Economics and Administrative sciences Journal Article 2015 12 26 Earnings smoothing is concerned with and influenced by various factors. In this regard, managers' properties and traits can affect the style of making decisions investigating "optimism can result in our better and more precise cognition about the firms' performance particularly in making decisions regarding purchasing stock.This research studies how managerial optimism can influence earnings smoothing. In this regard, 107 listed companies in Tehran Stock Exchange in a period of 11 years (2005-2015) were selected as the sample. The index of net income divided to total assests is used to assess the earnings smoothing, and the index of the number of increase in the price of stock days is used to appraise the management optimism. Also, effective variables on earnings smoothing (the dependent variable) such as agency problems, asymmetric information, and corporate governance have been used to investigate the issue in-depth. The obtained data were gathered annually by the help of "Tadbir Pardaz", "Rahavard Novin", and official site of Tehran Stock Exchange. Multivariable regression model was applied in order to test the research hypotheses. Data were anaysed by “Eviews8" software. The results present that optimistic managers are more capabable of earnings smoothing. In other words, the financial manifests and lists of the companies administered by the optimistic managers present more smooth earnings. Earnings smoothing is concerned with and influenced by various factors. In this regard, managers' properties and traits can affect the style of making decisions investigating "optimism can result in our better and more precise cognition about the firms' performance particularly in making decisions regarding purchasing stock.This research studies how managerial optimism can influence earnings smoothing. In this regard, 107 listed companies in Tehran Stock Exchange in a period of 11 years (2005-2015) were selected as the sample. The index of net income divided to total assests is used to assess the earnings smoothing, and the index of the number of increase in the price of stock days is used to appraise the management optimism. Also, effective variables on earnings smoothing (the dependent variable) such as agency problems, asymmetric information, and corporate governance have been used to investigate the issue in-depth. The obtained data were gathered annually by the help of "Tadbir Pardaz", "Rahavard Novin", and official site of Tehran Stock Exchange. Multivariable regression model was applied in order to test the research hypotheses. Data were anaysed by “Eviews8" software. The results present that optimistic managers are more capabable of earnings smoothing. In other words, the financial manifests and lists of the companies administered by the optimistic managers present more smooth earnings. https://amf.ui.ac.ir/article_21186_8bea4fc1e2a176c08759f6a48ea5f8d8.pdf