The Effective Motivations OnEarning Management

ABSTRACT: Users of financial statements and other accounting reports, Potential investors, especially if associated with the procedure and how to manipulate profits by managers earn more, achieve more informed economic decisions. In this paper, according to earnings management literature, six factors were identified as the most common incentives that affect the earnings management. Taking into account the economic, social and cultural factors in Iran, these comments on Tehran Stock exchange, between 2004 and 2010 were analyzed. The results eventually show that the three factors of ownership structure, company growth and Firm size have a positive and significant relationship with earnings management whereas the financial leverage, the main supply of stocks and bonuses of directors have not any significant relationship with earnings management.