Appraising Accrued & Real-Based earning management to achieve industry Average Profitability

In order to materiality of accounting earnings in management compensation and turnover, management performance evaluation this paper helps some papers on relative industry average Profitability as a measure of earnings .This measure is specified out of company and control. It is a movable goal that depends on profitability of other companies in the same industry. In addition managers are likely to have strong incentives to maintain earnings in desirable level and to achieve industry-average profitability but sometimes manage earnings by accrual & real-based earnings management This research is to measure accrual & real-based earnings management in order to achieve industry average profitability by two hypothesis .After considering the parameters on listed Tehran Stock Exchange, a total of 186 companies were screened and selected. The hypothesis testing method is based on “Panel data method. Due to the result, A direct and significant relationship exists between “achievement of industry profitability average and “accrual & real earnings Management” of the companies. In fact, companies engage accrual & real earnings management to achieve industry profitability Average