Document Type : Research Paper
Abstract
Environmental uncertainty and managers` use of discretionary accruals
Abstract
This study examines the impact of environmental uncertainty in terms of how managers use discretionary accruals for companies listed in the Tehran Stock Exchange. Therefore, 123 companies were selected as a sample over 1997 to 2008 in this research. To test the hypotheses, we use the multivariate regression model. The Results of this research shows that there is a positive and significant relationship between environmental uncertainty and variability of un-managed earnings. Also a Positive relationship between environmental uncertainties and the level of discretionary accruals as well as level of discretionary accruals and income smoothing were approved. Although according to result of this research, there isn't a positive relationship between environmental uncertainty and income smoothing, but more deeply relationship between discretionary accruals and income smoothing for firms which are operated under high uncertainty was approved.
Keywords: discretionary accruals, environmental uncertainty, income smoothing
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