M.A. Thesis:

Employee Diff،FREE Cash Flow ،Corporate Governance and Earnings Management

The main objective of this investigation is determining the relation between employment gap, free cash flow, corporate governance and profit management. Samples of the investigation include 60 companies accepted in Tehran Stock Exchange during 1390-1395 period of time. The method of the investigation is correlation type. In this paper, independent variables include free cash flow, employment gap and the dependent variable is profit management. In this work, the modified Jones model is used in order to evaluate the profit management based on the accruals. Analyzing the results demonstrate that there is a significant positive relationship between employment gap and profit management. Also, there is a significant positive relation between free cash flow and the profit management. On the other hand, institutional ownership, modifies/leverages the relationship between free cash flow and the profit management and has negative impacts. Moreover, the independency of the directors’ board, modifies the relationship between free cash flow and the profit management and has negative effects. The audit committee expertise, adjusts the relationship between free cash flow and the profit management and has positive effects. The institutional ownership also adjusts the relationship between employment gap and the profit management and has negative impacts. On the other hand, the independency of the directors’ board, adjusts the relationship between employment gap and the profit management and its negative impact is concluded. Additionally, the audit committee expertise adjusts the relationship between employment gap and the profit management, which has negative impacts

Keywords: profit management, employment gap, free cash flow, corporate governance, management