Abstract
Business unit profit is one of the financial statements items, which is important for all investors so that investors' in investments decisions prefer smooth earn and reduced volatility. Hence, managers are trying to smooth earnings and growth rate. So the managers tend to Incom Smoothing in order to convey and report the secret information about future profits. The fundamental question of this research is if there is significant relationship between Incom Smoothing and future profitability?
The research data is collected from 39 active firms in the metals and Minerals Industries in the ISE during 1384-1389 using Rahavard novin software and ISE site. The research method is descriptive and correlational with applied nature. The statistical technique used for examining the assumption is Pearson coefficient of correlation and variable Regression model. In the research there are 4 assumptions. Percent results show that there is a positive significant relationship between Incom Smoothing and future profitability in 95% confidence level.
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