Social Capital and Earning Management

Financial statements play a significant role in capital markets. They show flexibility and performance and represent the company's financial situation and the business unit Management is responsible for providing this information, so Managers may be motivated by the pursuit of short-term profits by managing discretionary accruals to exaggerate or hide the true performance of their company. This research Studies the relationship between managers social capital with earnings management of accepted companies in TSE In. this research for the measurement of social capital is used questionnaire and for measurement of earnings management is used Jones adjusted model (presented by Dechow, Sloan & Sweeney, 1995). In this paper, the number of 112 accepted companies in TSE investigated in period 2007-2011. In this research for testify hypothesis is used Chi-Squared regression model in software SPSS. Based on the research results there is a Positive and significant relationship between managers social capital with earnings management of accepted companies in TSE.