Document Type : Research Paper


Audit Committee is a key element of corporate governance. Understanding and knowledge of experienced members of the Audit Committee increase the Company's financial reporting and auditing. The objective of this study is the investigation impact of audit committee financial expert on managerial short-termism in companies listed on the Tehran Stock Exchange. To measure managerial short-termism were used three criteria discretionary accruals and the actual items (through manipulation of sales and a reduction in discretionary spending). Tehran stock exchange listed firms constitute statistical population of the research. The sample consisted of companies that have stock before 2012 and has a member of the audit committee in the years 2013 to 2016.
Financial expertise of audit committee members had no significant effect on earnings management on the basis of accruals. The investigation audit committee financial expert effect on real earnings management revealed that members of an audit committee financial expertise on the real earnings management through manipulation the sales and reducing discretionary spending is negative effects. These findings are useful for policy makers to formulate and exchange of useful obligation to respect the Charter of the Audit Committee and the necessity of applying the principles of corporate governance and and prepared to have voluntary corporate governance report.