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- E-ISSN2233-5382
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E-ISSN : 2233-5382
The Amount of Earnings Per Share’s Adjustment and Earnings Management
Alireza Mehrazeen (Islamic azad university, Neyshabur)
Mahmoud Mousavi Shiri (Payame Noor University)
Abstract
relationship between actual profits’ deviation from the profits expected in earnings per share’s adjustment announcements and the degree of apparent earnings management in annual financial statements. Research design, data, and methodology - The samples consisted of 133 companies from ten industries. The companies were selected among those listed in the stock exchange, and their data were examined covering the two-year period from 2008 to 2010. Tests were conducted using a regression model and SPSS statistical software. Results - The findings indicate the following. There is no significantly positive relationship among the last earnings per share’s adjustment forecast, the first earnings forecast per share, and earnings management. Moreover, the amount of the latest earnings per share’s adjustment forecast relative to its first forecast is not associated with the companies’ discretionary accruals items. Finally, the hypothesis that a relationship exists between companies’latest adjustments of their earnings per share and earnings management was tested the results indicate that there is no such relationship. Conclusions - The study’s results suggest that the amount of earnings per share’s adjustment is not a motivation for earnings management.
- keywords
- Earnings Per Share, Earnings Per Share’s Positive Adjustment, Earnings Per Share’s Negative Adjustment, Earnings Management
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