摘要：This paper investigates the usefulness of accounting information in forecasting earnings management. For this purpose, the firms listed in the Tehran Stock Exchange (TSE) that engage in adjusting the annual earnings per share (EPS) were recruited as the sample. It was found that the contracting incentive (debt contracts) and capital market pressures (net income and operating earnings growth) are two incentives for adjusting of EPS by the management. According to the conceptual framework, information in accrual of an item was expected to play a key factor in detecting the firms with adjusted EPS. This was however not confirmed in this study. Furthermore, the firms with higher ratios of price earning (P/E) and book-to-market (B/M) appear to have more tendencies for adjusting of EPS under the capital market pressures was rejected. Finally, it could be totally said that the firms with further earnings growth and higher leverage seem to be more inclined to adjust their EPS. This can be exploited as a clue to predicting of earnings management in the firms.
关键词：Earnings management; adjusted earnings per share (EPS); accruals; capital market pressures; contracting incentive
