Univrsity Of Tehran Press Accounting and Auditing Review 2645-8020 13 3 2006 11 22 - - 18473 FA Journal Article 1970 01 01 This study is first research of earnings management by initial public offering (IPO) firms in Iran country. Using a sample of 30 Iranian IPO’s through 1378-1380, we investigate the pattern of discretionary current accruals (DCA) over time. We find that managers manage their company’s earnings in the first year as a public company but not in the years before the IPO. We also examine the impact of earnings management on the long-run stock price performance of IPO’s. We find a positive relation between the size of the DCA in the first year as a public company and long-run stock price performance over the next 3 years. A number of additional tests support these findings. This study is first research of earnings management by initial public offering (IPO) firms in Iran country. Using a sample of 30 Iranian IPO’s through 1378-1380, we investigate the pattern of discretionary current accruals (DCA) over time. We find that managers manage their company’s earnings in the first year as a public company but not in the years before the IPO. We also examine the impact of earnings management on the long-run stock price performance of IPO’s. We find a positive relation between the size of the DCA in the first year as a public company and long-run stock price performance over the next 3 years. A number of additional tests support these findings. https://acctgrev.ut.ac.ir/article_18473_68570a2c0eb06636444b2fe008c97fcc.pdf