The effect of earning management on stock liquidity, emphasizing at life cycle stages )Dikkinson Model Test )

The goal of the present research is to investigate about the effect of earning management on stock liquidity during different stages of life cycle of firms enlisted in Tehran Stock Exchange. To realize the research goals we studied 92 firms during the time period between 2008 and 2015. In order to measure earning management we have used a Modified Kaznik Model (1999), and to measure stock liquidity we have used 20 liquidity criteria, through which 17 items are among trading criteria, and 3 remaining criteria are from among information criteria or are order-oriented. Also, to measure firm’s life cycle we have used Dickinson’s Model (2011). To test the hypotheses we have used a multiple variables regression pattern. Results of the present research showed that as earning management increases, the firm’s stock liquidity decreases and also earning management results in a reduction of stock liquidity of firms in emergence and growth stages.