The Effect of Auditor Characteristics on relationship between Diversification and Real Earnings Management In the Tehran Stock Exchange Listed Firms

The growth of diverse companies and the willingness of companies to use diversification strategy to decrease risk mitigation is rising. Researches have led to identify the Behavior of financial variables in these companies. As a result, users of financial statements  and managers’ awareness increase in the context of diverse businesses.As a result, researches have helped to make appropriate and comprehensive decisions in diversification firms.

204 companies listed in Tehran Stock Exchange had been selected systematically,between 2012- 2017 ,and then, the data were investigated using SPSS24. From the point of view of purpose it is applied and from the perspective of research method,this research is descriptive – correlation.

In this study, by examining p-values of the assumptions, negative significant relationships between Business Diversification and Real Earnings Management were indicated. Also, auditor Characteristics have a significant effect on the relationship between Business Diversification and Real Earnings Management.

in Diversified companies, as the level of Business Diversification increases, managers' tendency to manage Real earnings decreases. Also, auditor characteristics can be an indicator to measure the relative extent of Real Earnings Management in diverse firms.