Identifying the Dimensions of Earnings Management on Bankruptcy Risk in Firms Listed on the Tehran Stock Exchange

Authors

  • Seyyed Hamed Feyz Javadian * Department of Statistics, Kermanshah Branch, Islamic Azad University, Kermanshah, Iran.
  • Mehdi Mehri Department of Accounting, Kermanshah Branch, Islamic Azad University, Kermanshah, Iran.

https://doi.org/10.22105/tqfb.v2i3.70

Abstract

Firms need to maintain their value to attract investors. A decline in firm value can erode investor confidence. Managers can influence firm value through earnings management. Accordingly, this study examines the impact of accrual-based and real earnings management on bankruptcy risk. To achieve this objective, financial data from a sample of 133 firms listed on the Tehran Stock Exchange (TSE) over the period 2019–2023 were analyzed. Hypotheses were tested using logistic regression implemented in SPSS. The findings indicate that both accrual-based and real earnings management have a positive and statistically significant effect on firms’ bankruptcy risk.

Keywords:

Accounting earnings management, Real earnings management, Bankruptcy risk

References

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Published

2025-08-24

Issue

Vol. 2 No. 3 (2025): Transactions on Quantitative Finance and Beyond

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Articles

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Copyright (c) 2026 Transactions on Quantitative Finance and Beyond

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How to Cite

Feyz Javadian, S. H., & Mehri, M. (2025). Identifying the Dimensions of Earnings Management on Bankruptcy Risk in Firms Listed on the Tehran Stock Exchange. Transactions on Quantitative Finance and Beyond, 2(3), 178-188. https://doi.org/10.22105/tqfb.v2i3.70
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