Identifying Effective Factors on Abnormal Net Operating Assets: Testing the hypothesis of Positive Theory and Accounting Flexibility

The purpose of this research is to identify the effective factors on Abnormal Net operating assets. For this purpose, the hypotheses of the positive accounting theory including the hypothesis of bonus plan, debt Covenant and political cost tested on the basis of accounting flexibility. The statistical sample of the study includes 163 companies from listed companies in Tehran Stock Exchange between 2009 and 2016. The results of the research show that there is a positive and significant relationship between abnormal net operating assets and accounting flexibility. This positive relationship indicates that the use of accruals will be reflected and accumulated in the balance sheet and will reduce the flexibility of accounting, which will limit the ability of management to apply accruals in subsequent periods. Also, the results of the research showed that there is negative and significant relationship between the amount of compensation, the ratio of debt and the percentage of institutional investors with changes in abnormal net operating assets and a positive and significant relationship between the firm size and the number of employees with changes abnormal net operating assets. According to the results of the research, it is suggested that in the future research, the abnormal net operating assets should be considered as an indicator of earning management.