Product Market Power, Industry Structure, and Corporate Earnings Management:Evidence from Tehran Stock Exchange

Document Type : Research Paper

Authors

1 University of Mohaghegh Ardabili, Ardabil, Iran

2 University of Tehran, Tehran, Iran

3 University of Esfahan, Esfahan, Iran

Abstract

This study investigates the relationship between product market power and competitiveness of industries with earnings management. In this study, to quantify earnings management, the models based on discretionary accruals were used. Two hypotheses were formulated and tested in this regard. In so doing, the data of 94 (460 years-firms) firms listed in Tehran Stock Exchange for the period between 1388 and 1392 was collected and tested by using the multi-variable regression model based on panel data. The experimental findings indicate that all two hypotheses are confirmed so that product market power and earnings management have a significant relationship and negative. The results also show that there is significant relationship and positive between competitiveness of industries and earnings management.

Keywords

Main Subjects

References

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Journal of Asset Management and Financing
Volume 4, Issue 2 - Serial Number 13
September 2016
Pages 1-14

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