management of companies listed on the Tehran Stock Exchange

In general, macro-monetary and financial variables are among the factors that can affect the performance of companies. Exchange rates are one of the factors that affect the business relations of enterprises with the outside world. Exchange rate risk arises from changes in stock returns as a result of foreign exchange fluctuations. On the other hand, earnings management has always been a challenge for managers and investors, and in the meantime, most studies have focused on in-company earnings management factors and less on in-company variables, especially the impact of an important variable such as exchange rate. In this study, the asymmetric effects of exchange rate passage on earnings management of 131 companies listed on the Tehran Stock Exchange during the period 2008-2020 have been investigated using the Generalized Torque (GMM) approach. Based on the results, positive exchange rate shocks on SEM1 and SEM2 have a negative and statistically significant positive effect on SEM4 and negative shocks have a positive and significant effect on SEM3. While the degree of positive exchange rate shock on SEM4 and the positive exchange rate on SEM3 is greater than one, it is incomplete in relation to other cases. Based on the results, the degree of exchange rate passage has asymmetric effects on earnings management depending on the type of currency shock and earnings management variable.