Identification the Efficient and Opportunistic Earnings Management Approaches in the Earnings Quality Levels

Document Type : Research Paper


1 Associate Prof., Accounting, Faculty of Social Sciences, Imam Khomeini International University, Qazvin, Iran

2 MSc. Accounting, Faculty of Accounting and Management, Islamic Azad University of Qazvin, Iran


Earnings management is both good and bad. Of course, a
little of earnings management can be improved information content of
accounting. Opportunistic behavior of management with earnings
manipulation decrease information credibility and wreck earnings
quality. This research is trying to identify efficient or opportunistic
type of earnings management in portfolio of high and low levels of
earnings quality. For this purpose, data of 841 firm- year during 2001-
2011 to estimate earnings quality and earnings management
measurement models and 490 firm-years to test the hypothesis were
analyzed. Results show that earnings management in firms has a low
quality of earnings opportunity. Thus, highly earnings management
reduces the quality of earnings and artificial data.