عنوان مقاله [English]
The purpose of the paper is to investigate the managers’ motivation for income smoothing whether managers smooth to distort or information transferring. The task is done by investigating the association between current earnings on future earnings and cash flows. On the other hand, many papers illustrate effective factors on income smoothing such as Firm size and Industry type. So the aim of the paper is to investigate the Income Smoothing effect on future earnings and cash flows forecasting according to two variable; Industry type and Firm size. So, the 82 sample firms are divided into large and small firms according to firm size variable and are divided into Axial and Peripheral firms according to Industry type. Income smoothing was measured as the negative correlation of changes in discretionary accruals with its changes in pre-discretionary accruals from 1378-85 for separated firms and then was investigated the association between current and future earnings and Returns with different Income smoothing from 1382-85 by Tucker and Zarowin model. The examinations results show that income smoothing in separate groups accomplish for distortion and no for information transferring.