The Effect of Financial Crisis on The probability of Fraudulent Reporting and Stocks Value

The companies which getting in to financial crisis, deals with earning decrease and as a result, share value decrease. Company managers' may increase accruals' uses to be able to manage the earning and to prevent the more decrease on company profit. Or maybe managers come to know that using the accruals will not take out the company from crisis conditions and make possible the profit identification. Therefore, in such conditions, managers' motivation to utilize the accruals and earning management will decrease and possibility of fraudulent reporting will decrease. While managers' making various decisions in financial crisis conditions regarding earning management and fraudulent activity. The main purpose of the present research is determining the impact of financial crisis on probability of fraudulent reporting and stock value. The research findings by multivariate regression method and panel data fixed effect approach for 174 stock market listed companies during 1389–1394 indicates that financial crisis has negative and significant effect on all three variables including probability of fraudulent, earning management and stock value.