Investigating the predictive power of bankruptcy models based on real and accruals earning management models of corporations accepted in Tehran Stock Exchange

One of the major challenges faced by major firms is the risk of financial instability and ultimately financial bankruptcy. Hence, the mainobjective of this paper is to predict bankruptcy based on real Earning management models and the accrual Earning management of companies admitted to the Tehran Stock Exchange. The research method is descriptive-applied and is a correlation study. The time domain ofresearch was between 1382 and 1395, with a sample of 110 companies (65 bankrupt and 65 non-bankrupt companies) selected from thelist of companies admitted to the Tehran Stock Exchange. Logistic regression model was used to test the research hypotheses. In general,the findings of the research hypothesis test show that the predictive power of bankruptcy models based on real profit management modelsand accruals management of companies accepted in Tehran Stock Exchange is significant. Therefore, it can be stated that the amount ofreal earning management and accrual earnings management affect the bankruptcy of the investigated companies.

Investigating the predictive power of bankruptcy models based on real and accruals earning management models of corporations accepted in Tehran Stock Exchange Keywords:

Accuracy of Forecast , Bankruptcy , Real Earnings Management , Accrual profit