The Impact of Operating Cash Flows on Limiting Accrual Profit Management Due to Institutional Owners' Supervision

Institutional investors are always looking to raise their capital and are trying to control and restrict accrual earnings with more supervision in the company. The present study investigates the effect of operating cash flows on limiting accruals management with respect to institutional owners' supervision and is purposeful, practical and causal (post-event) correlation methodology. The statistical population of the study consisted of all listed companies in Tehran Stock Exchange. Using systematic elimination sampling method, 132 companies were selected as research sample and were surveyed during the 6-year period from 2012 to 2016. To test the research hypotheses, statata software version 15 and multiple regression with panel data model were used. The results show that operating cash flow has a significant and negative effect on accrual management. Institutional ownership moderates the relationship between operating cash flow and accrual profit management.