A Study of Earnings Timing of Listed Firms in the Tehran Stock Exchange by panel data approach
Abstract. Given the growing importance of earnings timing of stock exchange, the recognition of contributing factors can be helpful in improving it. Market timing is a criterion that can be studied with respect to decision-making on earnings timing. One of the contributing factors in timing earnings is earnings management. It can be considered a dimension of real and accrual based knowledge management. Hence, the purpose of the study is to examine earnings timing with respect to market expansionary period and firms’ discretionary accrual-based earnings management. To do this, Jones’s modified model was used to determine level of discretionary accruals. The population of the present study encompasses all non-financial listed companies in Iran’s stock exchanges, and research sample consisted of 111 firms. Given the fact that the period of the research was a five-year course starting 2008 through 2012, data were composed of 555 observations. In order to test hypotheses, a multivariate regression method based on panel data was used. The results of the test indicate that firms can make more profits during market expansionary period, and they can manage earnings more effectively by achieving higher market valuation.
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