The Association between Related Party Transactions and Accounting Information Quality: Investigation The Role of Opportunistic Behavior of Managers

The main objective of this study is to investigate the relationship between Related party transactions and accounting information quality. This research sample includes 136 companies of Tehran Stock exchange during 2012 to 2016 that it has selected by using systematic sampling method.The research hypotheses is investigated via multivariate regression. This research uses panel data technique as its statistical method, and utilizes Eviews8 and Excel softwares for data analysis.In this research, Accounting information quality is measured using one metric for earnings management and three metrics for earnings smoothing.Results of the study indicate that there is a positive and significant relationship between related party transactions and earnings management. There is a positive relationship between the second metric for earnings smoothing and related party transactions and finally, There is no significant relationship between the first and third metrics for earnings smoothing and related party transactions. The findings reveal that earnings management and earnings smoothing using related party transactions occurs and reduces accounting information quality.