Investigation of the Impact of Product Market Competition on Earnings Quality of Listed Companies in Tehran Stock Exchange (TSE)

The objective of this paper is to examine the impact of product market competition on earnings quality. In order to achieve this aim, 110 listed companies on TSE over the period of 2004-2012 were examined using the panel data regression.
These findings revealed that product market competition has a significant and positive impact on the earnings quality. Therefore, it can be said that increasing product market competition may have an effective role in disclosure of more high quality information. In other words, this study states that in less competitive or concentrated industries, managers tend to create an opaque information environment to decrease proprietary and political costs of information disclosure as well to protect their competitive advantages.