M.A. Thesis:

Corporate Diversification٫ Real Earnings Management and Firm Value

The main purpose of this study is to investigate the relationship between corporate diversification, real earnings management and firm value based on the information of companies active in the capital market. In this study, real earnings management is considered in terms of cash flows, public, administrative and selling expenditure, and production costs. In this applied research with descriptive and correlational approach from ex post facto type, theoretical content by library method and statistical data through the information in the reporting of listed companies in Tehran Stock Exchange during the period of 2009 to 2015 (seven years old) were collected. Information obtained from 1281 Year-Company selected was gathered by systematic deletion sampling method and analyzed by statistical software R. Results of testing hypotheses using multivariate regressions with panel data approach at error level five percent showed that there is a no significant relationship between corporate diversification and earnings management through the manipulation of discretionary spending and operating cash flows . There is a significant relationship between corporate diversification and earnings management through manipulation of the production costs and firm value .

Keywords: Corporate diversification - Real earnings management - Firm value- manipulation of the production co