Document Type : Research Paper

Authors

• Mehdi Sadidi
• Sajad Ebrahimidardeh

Abstract

Managers are trying to decrease the environmental impact of uncertainty in the reported digit of accounting earnings using their authorities and the flexibility from the accounting standards. This paper aims to examine the relationship between environmental uncertainty   and accruals. In doing so, the research methodology was conducted on the basis of using multiple regression and correlation analysis.
The research hypotheses were analyzed through using the data related to 159 companies   from Tehran Stock Exchange during the period 1379-1387.  The research findings show that there is a significant relationship between environmental uncertainty and accruals and in the uncertain conditions, the size of discretionary accruals are more than the size of non-discretionary accruals. But under these conditions, it cannot be claimed that the variation of non-discretionary accruals are more than discretionary accruals.

Keywords

• Environmental Uncertainty
• Discretionary accruals
• Non­discretionary accruals
• Accounting earning