The Effect of Profit Management on Capital Cost of Companies Listed in Tehran Stock Exchange (Case Study: Pharmaceutical, Petrochemical and Automotive Industries)

Reported earnings and earnings management are among analysts' critical financial information andvariables as prominent factors in reviews and judgments. The present study has investigated the effect ofearnings management on the cost of capital of companies listed on the Tehran Stock Exchange on a caseby-case basis in the pharmaceutical, petrochemical, and automotive industries from ۲۰۱۰ to ۲۰۱۶. Twooptional accruals were used to measure earnings management using Jones' modified model and realearnings management. In this study, the required data were collected using library studies and modernRahavard software. Also, multivariate regression was used to test the hypotheses, and their significancewas determined using t and F statistics. The results indicate that in the three industries of pharmacy,petrochemical, and automotive, the criteria for measuring earnings management, i.e., optional accrualsand real earnings management, do not affect its capital cost.

Keywords:

Earnings Management , Management Of Real Profits And Optional Accruals , Cost Of Capital