Investigating the effects of types of cash flow and controlling shareholders on the relationship between profit management and financial performance to predict financial bankruptcy (firefly algorithm)

Companies need sufficient resources to continue operating, including sufficient cash to pay lenders. If the company does not have enough ability to acquire resources to meet its needs, it will suffer financial helplessness. When faced with financial helplessness, companies manipulate accounting profit as one of the performance evaluation items. In this situation, the management manages the profit by manipulating the accounts, the purpose of which is to give good information and news to the capital market, in order to prevent the decrease of the company's value. If the accounts are manipulated, the existence philosophy of the financial statements will be damaged and their reliability will be lost. Therefore, in the present research, the effects of cash flow types and controlling shareholders on the relationship between profit management and financial performance have been analyzed in order to predict financial bankruptcy in Tehran stock exchange companies. For this purpose, the data of 128 selected companies during the period of 1390 to 1398 have been used. Data analysis was done in two parts; In the first part, using the panel data regression method, the effect of cash flow types and controlling shareholders on the relationship between profit management and financial performance of companies has been estimated. The results of this part showed that the profit management variable had positive effects and the performance variables, controlling shareholders, capital cash flows, equity cash flows and free operating cash flows had a negative effect on the bankruptcy criteria of companies; In addition, it was observed that the types of cash flows examined in this research had a moderating effect on the relationship between profit management and corporate bankruptcy. Next, in the second part of the analysis, based on the coefficients obtained in the previous part and using the firefly algorithm, it is discussed. The results of this part also showed that the percentage of success of the firefly algorithm in predicting the bankruptcy of companies was equal to 98.12%. Based on this, it is suggested that policies based on control and preservation of various cash flows and the use of controlling shareholders be used to reduce the possibility of bankruptcy of companies.