The Relationship Between Profit Management and Market Liquidity

In today's world, accounting plays an important role in advancing the profitability of companies and organizations. Given the growing importance of liquidity, knowing the factors that affect it can help improve it. The present study was conducted to gather evidence regarding the role of earnings management in the liquidity of a company's stock. Profit management is a special form of profit manipulation in which managers manipulate profits in a way that does not reduce the value of the company by exercising their authority in accordance with standards and rules or through the structure of transactions. The statistical population of the present study is all companies listed on the Tehran Stock Exchange in the period under study between the years 91 to 95. Using a systematic elimination method, a sample of 189 companies is considered. In this research, model M Used to measure earnings management. In this study, Eview software was used to analyze the data. The results show that there is a positive and significant relationship between earnings management and market liquidity. The results of the research hypothesis indicate a significant effect of earnings management on market liquidity.