International Journal of Management, Accounting and Economics
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Volume 2, No. 6, June 2015 Pages: 538 - 546
Investigating the Effect of Capital Structure and Growth Opportunities on Earnings Management
Mahmoud Nozarpour, Hamid Norouzi
Corresponding author:
mahmoud_nozarpour[at]yaho[dot]com
Abstract:
The main goal of this study is to investigate the effect of capital structure and growth opportunities on earnings management in companies accepted in Tehran securities exchange during 2008 to 2013. Before data analysis, Chow test was applied to determine the appropriate model to estimate parameters and independent variables effect on dependent variable. Then, research hypotheses were tested through pooled data method. Research results showed that there is a significant relationship between capital structure index financial leverage and earnings management. Also, research showed that there is a nonlinear and significant relationship between growth opportunities and earnings management and growth opportunities have a significant effect on this relationship.
Keywords:
Growth opportunities, capital structure, earnings management
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