The Relation between Institutional Investors and Mispricing of Accruals on listed companies on the stock exchange

Accounting as a supplier of financial information can help investors in this area. One of the most important accounting information is accounting profit. The accrual portion is affected more than the cash portion of the temporal events. The accrual of interest include items such subjective estimates and allocations. But cash portion involves facts and
is less prone to distortion. For this purpose, 127 companies listed in Tehran Stock Exchange were examined during the period 1387 to 1391. Results show that accruals are not exact pricing in firms with high institutional ownership and in firms with low institutional ownership. This suggests that institutional investors have been affected by earnings management and cannot be true and accurate pricing.