Comparative Investigation of Relations between Initial Public Offering and Earning Management Based on Discretionary Accruals in the Year of IPO and Years before and after that

Earnings management has long been one of the central issues in initial public offerings (IPOs). According to a method of earnings management activities that administrators can manage reported earnings from the definition of real activity. The purpose of this study is to explain the effect of initial public offerings on Discretionary accruals earning management. In order to reach this goal 1408 years-company (128 companies for eleven years) Viewed and collected from the annual financial reports of companies admitted to the Tehran Stock Exchange were tested, during the period from 2006 to 2016. Findings of the research show that earnings management through accrual items has a positive and significant relationship with initial stock offerings. Further analysis shows that earnings management through accrual items is more than the year before the initial stock offerings, while earnings management through accrual items is lower in the year after the initial stock offerings than the initial stock offerings year.