The Effect of Ownership Structure on Earning Management in Companies Listed on the Tehran Stock Exchange

The Effect of Ownership Structure on Earning Management in Companies Listed on the Tehran Stock ExchangeProfit is considered as one of the most basic and important items of financial statements in financial and economic decisions, which is considered by many people. But sometimes managers, due to maximizing their own interests, may report profits in a way that contradicts the goal of providing the general interests of users. earning management refers to the set of actions that managers take in order to decorate information to achieve specific goals. Based on the mentioned materials, the main goal of this research is to investigate the effect of ownership structure on earning management in companies listed on the Tehran Stock Exchange. In order to achieve the general goal of the research, three hypotheses were developed and using the systematic elimination method, a sample of 114 companies was selected from among the companies admitted to the Tehran Stock Exchange between 2010 and 2016. Discretionary accruals were considered as a measure for earning management, and Jones' modified model was used to estimate discretionary accruals. The analysis of the collected data has been done using the multivariate regression model using the statistical method of combined data. The results of the research hypotheses test show the negative and significant effect of institutional and managerial ownership on earning management, as well as the positive and significant effect of corporate ownership on earning management.