Investigating the Effective Factors on Smoothing of Profit in Service Companies Accepted in Tehran Stock Exchange

In this research, the factors affecting the smoothing of profits in listed companies in Tehran Stock Exchange were investigated. Profit, as one of the criteria for financial decision-making, is of utmost significance and is considered as an important factor in financial investigations and judgments. Therefore, the economic outcomes of profitability reporting are inevitable. The purpose of this study is to assist investors and analysts in making proper investment decisions. In this study, correlation and multivariate linear regression model were used to examine the variables under study. The estimated period of the model was from 2011 to 2016. The statistical population of the study consisted of all of the companies accepted in Tehran Stock Exchange. As some restrictions were applied, 52 remaining companies were selected as the research sample. The results of the study using multivariate linear correlation and regression model show that during the study period, company size and asset growth rate have a positive and significant effect on profit smoothing, whereas the variables of information asymmetry, ownership structure, and impact risk are not found to have a significant effect on profit smoothing.