THE IMPACT OF EARNINGS MANAGEMENT ON EARNINGS QUALITY

Since the financial statements provide the related and valuable information to groups outside the organization, the heavy reliance on accounting numbers cerates strong incentives for managers to manipulate profits in their interest. Earnings management does not necessarily reflect the actual performance and may lead to providing improper information to the company resulting in the incorrect judgments of shareholders and investors about the company's performance. Thus, for an organization, an effective mechanism for protecting investors in corporate governance to achieve true and fair information about the company is critical. The decisions of management reporting are an important determinant of the quality of accounting information. In the present study, the effect of earnings management as the most well-known intervention in financial reporting management is studied in accounting earnings quality Because recent studies have shown that accounting information quality has important economic consequences determinants of quality of information are important.

Earnings Management, Earnings Quality, Corporate Governance, Discretionary Accruals, Earnings Features