بررسي اثر جريان هاي نقد آزاد و سهامداران نهادي بر مديريت سود در شركت هاي پذيرفته شده در بورس اوراق بهادار تهران

An Investigation of the Impact of Free Cash Flows and Institutional Shareholders on Earnings Management in Listed Companies in Tehran Stock Exchange

Most researches have used Jensenʹs hypothesis to examine the relationship between Earnings Management and Free Cash Flows(FCF). Jensen argues that managers in low-growth firms with high FCF will use income-increasing accruals to obtain their benefits in short time. Also Jensen argues that some factors such as Debt factor and Distribution of FCF as a dividend can modify the relationship. In this research we investigate the Impact of Institutional Shareholders as an external monitoring on relationship between Earnings Management and Free Cash Flows. We induce that Institutional Shareholders have incentives to control the opportunistic behavior of managers because of spending their resources in companies. Using a sample of 90 firms through1378-1384,We found that there is a positive relationship between earnings management and high free cash flows in low-growth firms but we did not find significant relationship between Institutional Shareholders and earnings management in low-growth firms with high-FCF.