The Impact of Related Party Transactions on Earnings Management in Companies Listed on the Tehran Stock Exchange
Authors
Mohammad Majidpour
Master's Degree, Department of Accounting, Rudsar and Amlash Branch, Islamic Azad University, Rudsar, Iran.
Mohsen Khodadadi
Department of Accounting, Roudsar and Amlash Branch, Islamic Azad University, Roudsar, Iran
Abstract
The present study examines the relationship between related party transactions and earnings management in companies listed on the Tehran Stock Exchange. This research employs an analytical method and utilizes financial data from companies for the studied years. Initially, data were collected and analyzed using the specified methodology. The results indicate that related party transactions impact earnings management. Moreover, different subsets of related party transactions, including sales, purchases, receivables, payables, and guarantees, also have a significant effect on earnings management. These findings can assist financial decision-makers, auditors, and other stakeholders in choosing the best management practices for controlling and managing earnings under various conditions. Therefore, this research can enhance our understanding of earnings management mechanisms and their relationship with related party transactions. Additionally, this study can aid financial decision-makers and regulatory bodies in developing optimal strategies and policies for controlling and managing earnings, identifying strengths and weaknesses in the process.
