The Effect of Financial Status on Earnings Quality of Listed Firms in Tehran Stock Exchange

Document Type : Research Paper

Authors

1 Assistant Prof. of Accounting, Faculty of Management and Accounting, University of Tehran, College of Farabi, Qom, Iran

2 Assistant Prof. of Economics, Faculty of Management and Accounting, University of Tehran, College of Farabi, Qom, Iran

3 Ph.D. Candidate of Accounting, Faculty of Management and Accounting, Farabi campus of Tehran University, Qom, Iran

Abstract

The present study examines the effect of financial status on earnings quality of listed firms in Tehran Stock Exchange. In this regard, Altman adjusted model for Iranian content is used to determine the financial status of Iranian listed firms. In terms of earnings quality, four accounting based earnings quality attributes include accruals quality, persistence, predictability and smoothness are tested. Using a sample of 119 firms for a period of 2002 to 2016, are run multivariate regression models on a panel data collection. The results shows firms that were ranked in healthy firms based on Altman adjusted model, have significantly higher accrual quality than bankrupt firms. However about persistence, predictability and smoothness, there were not any significant differences between healthy and bankrupt firms

Keywords

References

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Accounting and Auditing Review
Volume 24, Issue 1
2017
Pages 127-146

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