The effect of different levels of financial leverage on the relationship between accrual-based profit management and firm performance

This research studies the effect of different levels of financial leverage on the relationship between accrual-based profit management and company performance. The present research is applied in terms of purpose and is a methodology of the type of causal research (post event). The statistical population of this study was all companies accepted in Tehran Stock Exchange. Using systematic elimination sampling, 129 companies were selected as research sample and investigated in the period of 10 years between 2008 and 1396. The method used to collect information is library and to test the hypotheses, multiple regression has been used with the panel data model. The results of the research show that there is a positive and significant relationship between earnings management based on accruals and performance of the company. High levels of financial leverage have a reciprocal effect on the relationship between earnings management and accruals-based performance. But low levels of financial leverage have a direct and significant effect on the relationship between earnings management based on accruals and firm performance.