The Effect of Earnings Management on the Earnings Persistence of Companies Listed in Tehran Stock Exchange

This paper explores the effect of earnings management on the earnings persistence of companies listed in Tehran Stock Exchange. We employ financial data of 95 firms listed in Tehran Stock Exchange during 1378 to 1383. Panel data methodology is used in order to test the hypotheses of this research. This paper contains significant and consistent results. The results of testing hypotheses for each of the six years and the pooled sample show that earnings persistence in the firms that does earning management is higher than other firms. The results also demonstrated that there is a positive relationship between earnings smoothing and earning per share persistence.