An Investigation on Some Factors Affecting Accounting Accruals Persistence; Evidence From Tehran Stock Exchange (TSE)

The article is going to investigate persistence of accruals in Tehran stock exchange listed companies from year 2008 to 2012. To this aim, a sample of 72 companies for a five year period has been provided. In this research, the accounting accruals is considered to the operational aspect and is decomposed into two parts of sale growth and accounting distortions. Their components are connected to accounting accruals. The first part is focused on the company’s output growth while the second part is focused on the efficiency using the net operating assets turn over. In order to examine research hypothesis, a multiple regression with estimated generalized least square method from the combined data are employed. The findings indicate that increasing accounting accruals decreases their persistence. Also there is a significant positive relation between two sets of sales growth and efficiency using the net operating assets turn over, and accounting accruals persistence. It is also showed that their increasing will increases accruals persistence. However, there is a significant negative relation between the interaction of these component and accounting accruals persistence.

Accounting accruals persistence, Sales growth, Efficiency using the net operating assets turnover, Accounting distortions, Net operating assets, Tehran stock exchange