The study of relationship between managers’ behavior in earning reporting and debt structure

Mohammad Hassani¹ Amir Khoddami²

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

IOI Code : XYHC-BEFAF
Publication : 4th International Conference on Modern Research’s in Management,Economics & Accounting(4meaconf.com)
Abstract :
    Most prior studies show a positive relation between debt and earnings management. The purpose of this research is the study of relationship between managers’ behavior in earning reporting and debt structure. The research samples include 225 firms listed in Tehran Stock Exchange over the period 2011 - 2015. The research from the viewpoint of purpose is practical and from the viewpoint of execution method is descriptive-correlation. To conduct this research we use panel regression models via Eviews 6 and spss 18 statistical software. 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.

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