Investigating the relationship between financial constraints, GDP and earnings management

One of the most important accounting items in financial statements is net income. Profit is usually used as a basis for calculating taxes, as a factor in formulating profit-sharing policies, and as a guide for investment and decision-making. It should be noted that some intrinsic characteristics of companies reduce the usefulness of accruals by increasing the probability of estimation error and thus affect the quality of accruals and cause managers to show the best performance of the company through accruals. Take profit management. Therefore, based on this argument, the purpose of this study is to investigate the relationship between financial constraints, GDP and earnings management. The obtained results show that there is a negative and significant relationship between the financial constraints of the audited companies by the auditing organization and the amount of disclosed discretionary accruals. Therefore, the first hypothesis was confirmed. The results also confirm the second hypothesis that there is a negative and significant relationship between the amount of financial constraints of audited companies by the auditing organization and the amount of related information disclosed. On the other hand, the third hypothesis shows that there is a negative and significant relationship between GDP and profit management in companies audited by the auditing organization.