The comparative study of earning management and liquidity of stocks between the listed firms of Tehran stock exchange and OTC of Iran

Stock liquidity, including the factors affecting the financial decisions of investors in capital markets. On the other hand, earnings management influence over the content of the information released by the Company, indirectly affect the investment decisions.The purpose of this study was to compare the earnings management and stock liquidity between the firms Stock Exchange and OTC Iran. The study is descriptive -correlational studies .This study have been carried based on data published by firms listed in Tehran Stock Exchange and OTC Iran, in the period of years 2011 to 2015 with a sample of 152 Stock Exchange and 35 OTC firm.The method used to test hypotheses panel data regression. The hypotheses analysis was performed using R statistical software. The results of hypotheses testing shows that real earnings management in companies in the OTC stock is greater than the Stock Exchange companies. The results also show accrual earning management in OTC is more than firms Stock Exchange. As for the liquidity of shares in the Stock Exchange and OTC companies in Iran there was no significant difference.