The relationship between profit management and the performance Of companies studied in Bourse securities of Tehran

Abstract

Many research Findings emphasis that investors in their investments decisions will prefer smooth profit with low fluctuation. In this regards managers will try to manage the benefit and its growth. Managers either with tampering the information's for the sake of their benefit or transferring and reporting confidential information about management. The study tries to investigate the effect of benefit management by using negative correlation between the optional obligatory items change and anticipated changes of benefit. The essential performance indicators which include cash flow fund, earning per share, liability items and dividend yield have been considered and these components are considered as efficiency indicators in this research.The statistical population included all the listed companies in securities bourse in Tehran during 1384-1392. Using systematic call-off sampling method 89 companies was selected as the sample size. The results showed that there was a significant relationship between the profit management and companies performance. The profit management is also effective in forecasting future cash fund, in forcing solidarity between running and future yield.

Keywords

• profit management
• liability items
• performance