Profit Management in Companies Based on Related Party Transactions

Mehdi KhosroKhah, Hojatollah Salari, Ali Amiri

Abstract


In this research, the relationship between transactions with affiliated entities and profit management of listed companies in Tehran Stock Exchange was investigated. The research method was descriptive and correlational. The research sample was 87 companies that were selected in a systematic and purposive method. The required data were collected from the MABNA software and analyzed using Eviews econometric software. The results of this research showed that deals with affiliated entities account for 55.2 percent of profit management. Therefore, companies that transactions with affiliated entities manage their earnings.

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