The Effects of Gradual Increasing of Financial Leverage, Measure of Free Cash Flow and Company’s Growth on Earnings Management of Companies Listed in Tehran Stock Exchange

The aim of this study is to investigate the effect of gradual increasing of financial leverage, measure of free cash flow, and company’s growth as the proxies of opportunistic behaviors of managers on earnings management. In this research, three hypotheses were developed and for their validation, sa...

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Autores principales:	Seyyed Abbas Hashemi, Ehsan Kamali
Formato:	article
Lenguaje:	FA
Publicado:	Shahid Bahonar University of Kerman 2012
Materias:	earning management managers’ opportunistic behaviors financial leverage free cash flow growth Accounting. Bookkeeping HF5601-5689
Acceso en línea:	https://doaj.org/article/49759edf05f048df89f2ffb35938045f
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spelling	oai:doaj.org-article:49759edf05f048df89f2ffb35938045f2021-11-04T19:40:22ZThe Effects of Gradual Increasing of Financial Leverage, Measure of Free Cash Flow and Company’s Growth on Earnings Management of Companies Listed in Tehran Stock Exchange2008-89142476-292X10.22103/jak.2012.49https://doaj.org/article/49759edf05f048df89f2ffb35938045f2012-06-01T00:00:00Zhttps://jak.uk.ac.ir/article_49_1483134ce42298b92e2870c6a4f61c5b.pdfhttps://doaj.org/toc/2008-8914https://doaj.org/toc/2476-292XThe aim of this study is to investigate the effect of gradual increasing of financial leverage, measure of free cash flow, and company’s growth as the proxies of opportunistic behaviors of managers on earnings management. In this research, three hypotheses were developed and for their validation, samples were selected among the listed companies on Tehran Stock Exchange. Research period was the years 1999 to 2007, which was divided to five three-year periods. Afterwards, the eligible companies according to their level of financial leverage changes were classified into two control and test groups. The test and control groups include the companies with an increasing financial leverage and those with a high and constant financial leverage during the research period, respectively. The research results show that there is no significant difference for the rate of earning management between companies with a constant financial leverage and those with a gradual increasing financial leverage. The further results show the effects of free cash flows and company growth on managers’ opportunistic behaviors which can be impressive on rate of earnings management.Seyyed Abbas HashemiEhsan KamaliShahid Bahonar University of Kermanarticleearning managementmanagers’ opportunistic behaviorsfinancial leveragefree cash flowgrowthAccounting. BookkeepingHF5601-5689FAمجله دانش حسابداری, Vol 1, Iss 2, Pp 75-115 (2012)
institution	DOAJ
collection	DOAJ
language	FA
topic	earning management managers’ opportunistic behaviors financial leverage free cash flow growth Accounting. Bookkeeping HF5601-5689
spellingShingle	earning management managers’ opportunistic behaviors financial leverage free cash flow growth Accounting. Bookkeeping HF5601-5689 Seyyed Abbas Hashemi Ehsan Kamali The Effects of Gradual Increasing of Financial Leverage, Measure of Free Cash Flow and Company’s Growth on Earnings Management of Companies Listed in Tehran Stock Exchange
description	The aim of this study is to investigate the effect of gradual increasing of financial leverage, measure of free cash flow, and company’s growth as the proxies of opportunistic behaviors of managers on earnings management. In this research, three hypotheses were developed and for their validation, samples were selected among the listed companies on Tehran Stock Exchange. Research period was the years 1999 to 2007, which was divided to five three-year periods. Afterwards, the eligible companies according to their level of financial leverage changes were classified into two control and test groups. The test and control groups include the companies with an increasing financial leverage and those with a high and constant financial leverage during the research period, respectively. The research results show that there is no significant difference for the rate of earning management between companies with a constant financial leverage and those with a gradual increasing financial leverage. The further results show the effects of free cash flows and company growth on managers’ opportunistic behaviors which can be impressive on rate of earnings management.
format	article
author	Seyyed Abbas Hashemi Ehsan Kamali
author_facet	Seyyed Abbas Hashemi Ehsan Kamali
author_sort	Seyyed Abbas Hashemi
title	The Effects of Gradual Increasing of Financial Leverage, Measure of Free Cash Flow and Company’s Growth on Earnings Management of Companies Listed in Tehran Stock Exchange
title_short	The Effects of Gradual Increasing of Financial Leverage, Measure of Free Cash Flow and Company’s Growth on Earnings Management of Companies Listed in Tehran Stock Exchange
title_full	The Effects of Gradual Increasing of Financial Leverage, Measure of Free Cash Flow and Company’s Growth on Earnings Management of Companies Listed in Tehran Stock Exchange
title_fullStr	The Effects of Gradual Increasing of Financial Leverage, Measure of Free Cash Flow and Company’s Growth on Earnings Management of Companies Listed in Tehran Stock Exchange
title_full_unstemmed	The Effects of Gradual Increasing of Financial Leverage, Measure of Free Cash Flow and Company’s Growth on Earnings Management of Companies Listed in Tehran Stock Exchange
title_sort	effects of gradual increasing of financial leverage, measure of free cash flow and company’s growth on earnings management of companies listed in tehran stock exchange
publisher	Shahid Bahonar University of Kerman
publishDate	2012
url	https://doaj.org/article/49759edf05f048df89f2ffb35938045f
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The Effects of Gradual Increasing of Financial Leverage, Measure of Free Cash Flow and Company’s Growth on Earnings Management of Companies Listed in Tehran Stock Exchange

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