M.A. Thesis:

The cost of financing and profit management with a profitable moderating role

Abstract In the earnings behavioral perspective, profit is believed to be the benchmark of many decisions, including lending and interest rates, and so managers manage earnings. Will take. The main purpose of this study is to determine the impact of financing cost on earnings management with profit moderating role. This research was conducted for a period of 5 years between 2013 - 2017 in Tehran Stock Exchange. In this study, company age, firm growth, financial leverage, and company size were also used as control variables. Sample data of companies surveyed after reviewing their information availability by software Excel was categorized and analyzed using Ivyves software. The results showed that there is a positive relationship between the cost of financing with accrual management and actual earnings management and this relationship is significant. Since one of the incentives for profit management is contractual incentives and include financing, companies are therefore willing to finance in order to pay lower operating costs. Manipulating real and accrued items benefits. Profitability also moderates the relationship between the cost of financing with accrual profit management and actual earnings management, and the relationship is positive and significant.

Keywords: Financing Costs, Accrual Profit Management, Real Profit Management, Profitability