The Relationship between Professional Commitment and Ethical Perspective with the Earnings Management Behavior

Professional Accounting accepts such method of reporting that considered all benefits of users. On the other hand, with regarding to the definition of earnings management, managers reported a profit so that the problem does not comply with the general interests of users. The aim of this study is the consideration of relations between professional commitment and ethical perspective with earning management behavior. This study is a descriptive- correlation research. Population of study includes all financial manages of accepted companies in sock exchange in 2010-2011. With simple randomized method some companies selected as a sample. The instrument of study is a questionnaire. Structural equation model based on PLS method is used for analyzing acquired data. Results suggest a significant relation- ship between an individual’s ethical orientation and decision. Subjects with professional commitment seem to be less likely to engage in earnings management behavior and less likely to behave opportunistically. The study showed that when people have a personal interest, the personal interest will affect on Professional Commitment, but the personal interest will not affect on commitment and relativism. With regard to the impact ethical orientation financial Managers and their professional commitment on Earnings management behavior, It is essential that professional institutions and bodies responsible mange the ethical perspective of managers toward idealism and improving accounting profession and increasing reliance on reports provided by them.