The Impact of Earnings Management on the Value-Relevance of Earnings and Book Value: A Comparison of Short-term and Long-term Discretionary Accruals

Abstract

This study provides events about the impact of Earnings Management on the Value-Relevance of Earnings and Book Value with comparison of short­ term and long-term discretionary accruals. According to the result of this study, in Tehran Stock Exchange (TSE), Earnings management reduces the value-relevance of earnings and increases the value-relevance of book value and also the effect of long-term discretionary accruals on the value relevance of earnings and book value is greater than the effect of short-term discretionary accruals on the value relevance of earnings and book value.

Keywords

• earnings management
• accruals
• earnings
• book value
• discretionary accruals