Abstract

In present research, the relation between two variables of information transparency as an instrument of corporate governance and earning management investigated. This was due to its importance to companies that established in security and stock exchange. This is an applied research with a descriptive nature. In respect to implementation, this is a comparative-deductive research because its hypothesizes provided based on exist thesis; then the needed data gathered, analyzed and finally the related results obtained. Since that, the statistical society of this research should have the uniform features, thus 125 companies among those that established in Tehran stock exchange in period of 2002-2013, selected as research sample. Findings imply that among four hypothesizes of research, only the influence of observance the information disclosure regulation on earnings management rejected and the effect of three others including quality and sufficiency of information disclosure, information related to audit and disclosure the information related to board members share and reward on earnings management validated. The results show that the regulation notified by stock exchange and its implementation cannot influence the earnings management. Disclosure the timely information related to audit in companies and information related to board members rewards and shares that considered each year, and also the quality and comprehensive disclosure of information can affect the earnings management significantly.

Keywords: information transparency; corporate governance; earnings management; disclosure quality; board reward.

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