The Impact of Financial Flexibility and Financial Constraints on Earnings Management

Reported earnings of a company reflects the efficient allocation of resources within the company and the company's operating activities. Therefore managers have strong incentives to manage earnings. This study examines The Impact of financial flexibility and financial Constraints on earnings management. financing and the purpose of the application of the methodology of the study was causal (after the event) is. The research population firms listed in the Tehran Stock Exchange is using systematic eliminationas a sample of 103 companies in the period between 2010to 2015were selected. The results showed that financial flexibility have negative impact on realand Accruals base earningsmanaement. The results showed that financial Constraints on Accruals baseearnings management has a positive impact but did not show significant effect on the real earningsmanagement.