The Impact of Corporate Governance on Earning Management for Listed Companies in Tehran Stock Exchange

Abstract

The purpose of research was to study the impact of corporate governance on earning management for the firms listed in the Tehran Stock Exchange during the period of 2009-2014. So, 164 companies was determined that were listed in Tehran Stock Exchange during that period. Fusion/Panel data regression analysis in the app of Eviews 6 has been used to test the hypothesis of the study. Independent variables used in this research were including corporate governance mechanisms such as ownership of the board, the percentage of institutional ownership, board size, board independence and CEO duality. The dependent variable of the research was earning management based on modified Jones model. The control and firm's moderate size variables, return on equity, financial leverage, cash holdings, free cash flow and the company's life was also used. The findings show corporate governance mechanisms have no impacts over earning managements in all companies