The Impact of Real Earnings management on Future return on Assets

The aim subject of this paper is to examine the effect of real earning management on the return on assets (ROA). Real earning management accomplishes through different ways. This paper emphasizes to real earning management through reducing selling, general and administrative expenses, increasing gains from the disposal of longterm assets and long-lived investments; and overproduction. The statistical population is the listed manufacturing companies on Tehran Stock Exchange during 1380 to 1386. For the data analysis, multiple regression model approach was applied. The results indicates that there is a significant relationship between real earning management and future return on assets (ROA).