The Relationship between the Tenure, the Power and Diligence of the CEO with Real Earnings Management

Document Type: Original Research


1 Department of Accounting, Fasa Branch, Islamic Azad University, Fasa, Iran

2 Department of Accounting, Bandar Abbas Branch, Islamic Azad University, Bandar Abbas, Iran


The purpose of this study was to investigate the relationship between CEO’s (Chief Executive Officer) tenure, power and diligence with the management of earnings in companies admitted to Tehran Stock Exchange. This research is applied and includes 131 companies listed in Tehran Stock Exchange between 2013 and 2017. This research was tested in three hypotheses using multi variate regression in Eviwes software version 9. The findings of three hypotheses showed that among the independent and controlling variables, between CEO tenure (negative and significant), CEO’s (positive and significant), CEO’s diligence (negative and significant), market value to book value (negative and significant), the return on assets (negative and significant), and the size of the audit firm (negative and significant) have a meaningful relationship with real earnings management. As a result, it is imperative that managers and investors focus on this issue in order to see better management and investment.


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