The Relationship between Ethics and Earnings Management Behavior and the Investigation of Its Effect on Demographic Characteristic

The recent bankruptcies of large corporations and financial crises brought a serious loss to all stakeholders and investors lost a lot of opportunities. According to researchers, non-ethical behavior in corporate earnings management can be a moral failure. The main purpose of this paper is investigation of relationship between ethics behavior and earnings management. The research method is applicable-descriptive survey. The population includes two groups, including financial directors of large private companies in Yazd province and Postgraduate students of Islamic Azad University of Yazd. The sample includes 110 private companies that should be more than 50 personnel and 180 graduate accounting students studying at Islamic Azad University of Yazd spend the last year of his academic year. Data were collected through a questionnaire and in the analysis, Variables measured parameters were determined using factor analysis in SPSS Software. To examine the relationship between variables (continuous and abnormal), the spearman correlation test was used. The results indicate that there is no difference between ethics, idealism and relativism and their hypothesis is not confirmed. According to The second hypothesis, (the demographic) Gender and professional ethics in business have not shown a significant relationship with earnings management and their hypothesis is not confirmed. But the current situation (financial managers, students), education, age, duration of academic degree, professional ethics at the University, accounting experience, showed a significant relationship with earnings management And were approved. Unethical behavior of earnings management; whether the relativism and the idealists; may cause moral failure and bankruptcy of the company.