احمد خدامی پور - Faculty of Management and Economics, Department of Accounting , Shahid Bahonar University of Kerman, Kerman, Iran
اسماعیل امیری - Faculty of Economics and Administrative Sciences, Department of Accounting, University of Mazandaran, Babolsar, Iran

This study examined the role of positive and negative discretionary accrual management in the stock price impact. A sample of ۶۶ firms listed in Tehran Stock Exchange was selected for a ten-year period (۲۰۰۸-۲۰۱۷). Accrual management was found to lead to significant changes in stock prices, and uninformed investors incur trading costs caused by the stock price impact. The results showed two key points. First, the mispricing of discretionary accrual components in the market leads to an increase in the stock price impact, and second, the management of positive discretionary accruals has a greater effect on stock price impacts than negative discretionary accruals. Using positive discretionary accruals, investors overvalue the firm and engage in trading stocks. Due to the mispricing of positive discretionary accruals, an asymmetric behavior is formed in the stock price impact.

Discretionary accruals, Accrual management, Stock price impact, Illiquidity