Management bonus and earning persistence

Subject Areas : Management Accounting

Hashem Nikomaram ¹ , Parisa Pazouki ²

1 - - استاد گروه حسابداری و عضو هیات علمی دانشگاه آزاد واحد علوم تحقیقات تهران
2 - دانشجوی کارشناسی ارشد دانشگاه آزاد واحد علوم تحقیقات

Received: 2014-11-22 Accepted : 2015-01-10 Published : 2015-04-09

Keywords: management bonus, earning persistence, Accruals Quality,

Abstract :

The purpose of this research is to examine the relation between management bonus and earning persistence in a 10 years period from 2003 to 2012 in 108 listed firms on Tehran stock exchange. The research method is correlation and we use variable regression analysis for testing of hypothesis. The result is showing a direct relation between management bonus and earning persistence. On the other word, when management bonus increases,  earning persistence also increases. Other evidences are showing that when a company ‘size increases, the management bonus increases as well. The accruals quality has negative and revers effect on management bonus. Debt ratio has no effect on the management bonus.