Gholamreza karami0F; Maryam farajzadeh1F
Abstract
AbstractThe purpose of the present study is to investigate the relationship between information asymmetry and mispricing of accruals in Tehran Stock Exchange. Hence, we hypothesize that there is a significant positive relationship between the level of information asymmetry and mispricing of accruals. ...
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AbstractThe purpose of the present study is to investigate the relationship between information asymmetry and mispricing of accruals in Tehran Stock Exchange. Hence, we hypothesize that there is a significant positive relationship between the level of information asymmetry and mispricing of accruals. We implement Mishkin test and classification of portfolios method to respectively investigate whether there is any mispricing of accruals and its relationship with information asymmetry. Furthermore, the indirect balance sheet approach and bid-ask spread have been utilized to measure respectively accruals and information asymmetry. Thus, information of 82 entities during the time span of 5 years between 2008 to 2012 have been analyzed to test our hypothesis. The results depict that as the level of information asymmetry enhances, the difference between coefficients of predictions and evaluation of accruals in the Mishkin test increases. In other words, as the level of information asymmetry increases, the mispricing of accruals intensifies.
Gh. Karami; A. Tahriri; A. Davarinejad
Volume 8, Issue 31 , October 2010, , Pages 61-77
Abstract
The purpose of this paper is to investigate a relation between real earnings management and accounting earnings management to smooth earnings and to survey this fact when managers smooth earnings by real activities manipulation and when by discretionary accruals manipulation. On this paper is focus on ...
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The purpose of this paper is to investigate a relation between real earnings management and accounting earnings management to smooth earnings and to survey this fact when managers smooth earnings by real activities manipulation and when by discretionary accruals manipulation. On this paper is focus on discretional cash flow from operations as proxy variable of real earnings management and discretional accruals as proxy variable of accounting earnings management. Our statistical population is the firms listed in Tehran Stock Exchange that examined for the time period 1381 to 1386 by 98 firms as the sample.
As a result, we find evidences that show that managers use both real earning management and accounting earnings management to smooth earnings and relation between real and accounting earnings management is Simultaneous and managers use complementarily the two earnings management to smooth income.
