Examining The Effect of Firm Characteristics in The Relationship Between Macroeconomic Instability and Earnings Management

Articles in Press

Document Type : Original Article

Authors
Ali Tork Zahrani 1
Abbas Ali Daryaei 2
Hamzeh khoshoei 1
1 Department of Accounting, Isf.C., Islamic Azad University, Isfahan, Iran.
2 Department of Accounting, Imam Khomeini International University, Qazvin, Iran.
10.22034/jmaak.2025.77687.4296
Abstract
So far, a lot of literature has been presented in the field of earnings management, and all these literatures have helped to develop each other. The current research has also been done in this field; With the difference that the current research tries to compare the effect of economic instability in small and large firms and old and young firms. In order to achieve the purpose of the research, the information of 163 firms was used and these firms were divided into two groups (large and small firms) and two groups (old and young firms) and were tested through cross-sectional regression. Then Z test was used to compare the findings. The findings of this research showed that there is no significant difference in the impact of economic instability on accrual profit management in small and large firms. However, economic instability has had a different impact on real earnings management in small and large firms. On the other hand, the findings show that there is no significant difference in the impact of economic instability on accrual profit management in old and young firms. However, economic instability has had a different effect on real earnings management in older and younger firms. The current research advances a special discussion on the incentives of earnings management in developing markets, which develops the impact of macroeconomic instability on earnings management in various economic and institutional contexts
Keywords
Real earnings management
accrued earnings management
firm Size
firm Age
Economic Instability
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