Empirical Analysis the relationship between Accounting based Earnings Management and Debt Maturity Structure

Mohammad Hassani¹ Amir Khoddami²

1) Assistant Professor, , Tehran Shomal Islamic Azad University
2) M.A of Accounting, Tehran Shomal Islamic Azad University

IOI Code : XYCH-AECKG
Publication : 3rd International conference on Management , Economics and Humanities(icmeh.org)
Abstract :
    This research empirically analyzed the relationship between accounting earnings management and debt maturity structure. Accounting earnings management is measured using the residual values of the model proposed by Kothari et al (2005) and debt maturity structure is measured based on the ratio of short term debt to total debt. The research samples include 225 firms listed in Tehran Stock Exchange over the period 2011 - 2015. The solely research hypothesis examined by using multivariate regression model based on panel data method. The evidences indicated that the relationship between accounting earnings management and debt maturity structure is positive significantly. In fact, managers by using more debt with short term maturity have more tendencies to manage earnings. It is accordance with the debt contract hypothesis and financial distress theory. Other results showed that size and volatility of revenues have significant and positive relation with accounting earnings management; while leverage, growth, loss, operational cash flow and board size have significant and negative relation with accounting earnings management. Although, big auditor and board independence have no significantly effects.

Keywords : accounting earnings management discretionary accruals debt maturity structure short term debts