M.A. Thesis:

earnings management on the actual activities and information content of earnings

Because, earnings reports are widely used by analysts and other users of financial statements to be placed, the usefulness and quality are of interest to academics, researchers and professional associations involved. in some cases may earnings reports have been prepared in accordance with management policies and the so-called, profit to be managed. different earnings management practices lead to the disclosure of false information and content, reduced profits. Given the importance of accounting profit and its information content, in this study, the relationship between actual earnings and stock returns as the index measuring the information content of earnings. Using a sample of Company stock during the period 87-93 the results showed that the between real earnings management and information content of earnings and there is a significant negative relationship. In other words, results showed that with increasing earnings management using actual activities, information content of earnings is reduced.

Keywords: The real benefit management, information content of earnings, return on equity, earnings quality.