期刊名称：International Review of Management and Business Research
印刷版ISSN：2307-5953
电子版ISSN：2306-9007
出版年度：2014
卷号：3
期号：3Part 4
页码：1699-1708
出版社：Academy of IRMBR
摘要：Financial users are interested in evaluating companies performance and there are various methods for it. DuPont analysis is one of them. In DuPont analysis, a firms return on assets is decomposed into asset turnover (ATO) and profit margin (PM). Sale is a fundamental driver of net operating assets in the balance sheet and the main drive of net operating income in the income statement. The basis of this observation is in the articulation of the income statement and balance sheet, which ensures the effect of earnings management on operating income and net operating assets as a result of which ATO and PM move in the opposite directions. This study examines if the ratio of ATO / PM provides higher information content in detecting earnings management compared to non-discretionary accruals. Study sample includes 100 companies listed in Tehran Stock Exchange from 2002-2011. For research patterns, multivariate regression analysis using ordinary least squares and logistic regression were utilized. To identify data arrangement (panel or cross-sectional), Chow and Hausman tests were used. Based on the results, ratio of ATO / PM provides higher information content than non-discretionary accruals; changes of ATO and PM in the opposite direction are more likely for earnings management.
