This study provides some evidence about the characteristics of firms whose managers use discretionary accruals to smooth income. First, firms are classified into two categories of smoothers and non-smoothers then their characteristics of having opportunity and motivation to smooth income are examined through six hypotheses. Consequently, based on mean comparison of two independent groups and logistic regression analysis, the study provides evidence that income have had a weaker performance leading to a higher motivation compared with non income smoothers in Tehran stock exchange. Moreover they have more opportunity to smooth income because of having larger absolute discretionary accruals.
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