Document Type : Original Research
Author
Islamic Azad University, Tehran, South Branch
Abstract
This study aims to investigate the impact of financial accounting regulations on earnings management in companies listed on the Tehran Stock Exchange (TSE) during the period from 2015 to 2024. To achieve the research objectives, data from 100 selected companies, comprising 1,000 firm-year observations, were analyzed. The results of the hypothesis testing indicate that financial accounting regulations have a significant negative impact on earnings management; this suggests that strengthening legal frameworks and accounting standards can limit opportunities for earnings manipulation and opportunistic managerial behaviors. Furthermore, the role of digitalization was examined as a moderating variable in the relationship between financial accounting regulations and earnings management; however, the results showed that this moderating effect was not statistically significant. This finding suggests that the level of digitalization within the studied period was unable to either enhance or diminish the impact of financial accounting regulations on reducing earnings management. Accordingly, the focus of policymakers and regulatory bodies should be directed toward the effective implementation of financial accounting regulations and the enhancement of financial oversight quality.
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