The Relationship Between Income Smoothing and Gain of Selling Capital Assets in Iran

In recent decade, the phenomenon of income smoothing is remarkably has taken in to consideration by many financial and accounting researchers and authorities. Income smoothing is indeed a conscious manner that managers will usually proceed to for achieving some concrete purposes such as job security, rewarding, capital increase of company's shareholders and facilitating the ways for forecasting the issue of profitability. There are many techniques, methodologies and instrumentations for income smoothing which are mostly studied by accounting researchers. In the current research, the relationship between two variables of income smoothing and gain of selling capital assets in Iran has been investigated. In order to study the correlation between aforesaid factors, two groups of data have been utilized, the first group is based on Library studies and the second one is financial information in respect to these research variables, extracted from financial statements of approved companies in Tehran Stock Exchange during the years of 1382-1387. For the purpose of testing this research hypothesis, Panel Data Analysis has been chosen. The findings of this research explicate that there is no meaningful correlation between two variables of income smoothing and gain from selling the capital assets in Iran, since then the companies managers do not make use of this technique for smoothing the income despite of existing opportunities.