An Investigation of The Income Smoothing Behavior of Growth and Value Firms (Case Study: Tehran Stock Exchange Market)
- Mohammad Namazi
- Ehsan Khansalar
Abstract
The major objective of this study is to investigate the income smoothing behaviour of two different types of firms - value and growth - in the Tehran Stock Exchange (TSE) Market.
All firms listed in the TSE between 2003 and 2007 were examined using the Jones Model to investigate their income smoothing behaviours. Using the Jones model, the discretionary part of accruals was investigated. The results of this study revealed that growth firms tend to apply discretionary accruals more intensively than value firms. In order to support the robustness of the findings, the Eckel model, was also applied. The same result was found for the Eckel model as for the Jones model. The results indicated that growth firms achieved a higher degree of income smoothing than value firms.
The effects of various confounding factors which are different between these two types of firms, such as size of the company, standard deviation of earnings, market capitalization and consecutive trend of earnings, were also investigated. The results indicated that income smoothing in growth firms is larger than in value firms, and also that other items, which are known as representatives of the risk, are larger for growth firms than for value firms.
- Full Text: PDF
- DOI:10.5539/ibr.v4n4p84
Journal Metrics
h-index (January 2024): 102
i10-index (January 2024): 947
h5-index (January 2024): N/A
h5-median(January 2024): N/A
( The data was calculated based on Google Scholar Citations. Click Here to Learn More. )
Index
- Academic Journals Database
- ACNP
- ANVUR (Italian National Agency for the Evaluation of Universities and Research Institutes)
- CNKI Scholar
- COPAC
- CrossRef
- EBSCOhost
- EconBiz
- ECONIS
- EconPapers
- Elektronische Zeitschriftenbibliothek (EZB)
- EuroPub Database
- Excellence in Research for Australia (ERA)
- Genamics JournalSeek
- Google Scholar
- Harvard Library
- IBZ Online
- IDEAS
- Infotrieve
- Kobson
- LOCKSS
- Mendeley
- MIAR
- Norwegian Centre for Research Data (NSD)
- PKP Open Archives Harvester
- Publons
- Qualis/CAPES
- RePEc
- ResearchGate
- ROAD
- Scilit
- SHERPA/RoMEO
- SocioRePEc
- Technische Informationsbibliothek (TIB)
- The Keepers Registry
- UCR Library
- Universe Digital Library
- ZBW-German National Library of Economics
- Zeitschriften Daten Bank (ZDB)
Contact
- Kevin DuranEditorial Assistant
- ibr@ccsenet.org