smooth transition regression

The purpose of this study was to investigate the effect of return on equity on the relationship between earnings management and investment behavior of companies. In this research, the statistical information of the period 2011-2022was used for the companies admitted to the Tehran Stock Exchange. When the return on equity decreases, the managers manage profits and invest less in order to reduce investment costs by postponing investment in projects, and these companies They are likely to face financial problems. In this study, in order to measure the relationship between the research variables, the panel data method and the smooth transition regression (STR) model were used. The obtained results indicated that the inclusion of the mediating variable of return on equity in the relationship between profit management and investment behavior among companies listed on the Tehran Stock Exchange was significant. According to the results obtained from the estimated nonlinear model, it was observed that when the transition variable i.e. return on equity is higher and lower than the average of this variable, the effect of accrual and actual profit management variables on investment behavior is different.

Among the important policy objectives and economic programs, the implementation of policies for reducing the trade deficit. Empirical studies provided conflicting results regarding the effect of devaluations on the trade balance reached. This study aimed to investigate the nonlinear relationship between the real effective exchange rate and trade balance, considering the savings rate using a smooth transition regression approach during period 1960-2014. The results of smooth transition regression (STR) model estimation, confirmed that the savings rate had non-linear effect on the trade balance. Our estimation results showed that effectiveness of savings rate, the real effective exchange rate and terms of trade on trade balance depended to the regimes which Iranian economy was in there. Also we fund that generally in first regime savings rate and the effective real exchange rate had statically meaningful and positive effect on the trade balance and the terms of trade had a statically meaningful and negative effect on the trade balance. While crossing the threshold and entering into the second regime savings rate and terms of trade coefficients had statically meaningful and positive effect, but the real effective exchange rate had a statically meaningful and negative impact on the trade balance.