The survey of accounting variables effect on incomesmoothing in stock exchange companies

Abstract

In the present study the effects of company size, income-ability, institutional proprietorship, financial leverage and income rate have been surveyed as accounting variables on the income smoothing of the companies accepted in Tehran’s securities market. The study has investigated 146 companies accepted in Tehran’s securities market during the years from 2001 to 2013. Firstly, the sample companies were classified into smoothed and non-smoothed according to the Eckel’s index and then it has been dealt with the study hypotheses test by taking advantage of Hussmann and Lamer tests. The results of the study indicated that the relationship between the company size, income-ability, institutional proprietorship and financial leverage with income smoothing has been confirmed but the relationship between income-ability and income smoothing has not been confirmed.

Keywords: income smoothing, company size, income-ability, institutional proprietorship