The Effect of Managers Ethical Orientation on Earnings Quality of the Firms listed at the Tehran Stock Exchange

Because the income is one of the most important items that affect on investment decisions, so the consistence of ethical standards by managers has very high importance for accurate and reliable reporting. The review of available researches shows there is no domestic research that examines the effect of financial manager's ethical orientations on their reported earnings quality. For this reason, the purpose of presented research is the survey of extent and type of affection of financial manager's ethical orientations on the earnings quality of firms. This research is a applied research on the base of purpose and a descriptive-survey research on the base of the method of gathering data related to financial manager's ethical orientations and it is a descriptive research(to extract data from financial statements of firms) for data of earnings quality. In this research the gathered data of 85 firms listed on Tehran stock exchange was tested by using the structural equation model based on partial- List square (PLS) method and so the casual model of affecting Idealism ethical orientation on earnings quality was presented. The results of statistical analysis show that the ethical orientation of idealism ofmanagers has a positive effect on their reported earnings quality and it explains the 56% ofchanges in this variable. as results show, it is necessary that professional and responsible institutions pay special attention to the education of ethics in educational plan of accounting. Furthermore, the standard's setters should set the ethical professional rules and instructions that they are in accordance with the cultural atmosphere of our country by the way the ground is provided for more quality information in this profession.