IntroductionCompanies generally use unrealized gains on holding assets to increase their profits when necessary. On the other hand, the company may sell loss-making assets with the aim of transferring future losses to current periods and using a loss accumulation strategy, which seems to worsen the company's situation for the current fiscal year. But the main goal is to reduce the losses of future periods (Campa, Cao, & Donnelly, 2019).Accounting standards as well as International Financial Reporting Standards for property, plant and equipment, as well as impairment of assets, stating that assets should be measured at either cost or fair value, provide an opportunity for judgment and prudence (Ball, 2016). It can be stated that the use of the above standards in measuring fair value leads to precautionary measures to increase profits and losses in each reporting period. In other words, managers must decide whether to change the profitability process in the current period or to continue the conservative process of maintaining assets at cost (Rashidi, 2020). In Iran, according to the Communication of the Tehran Securities and Exchange in 2016 and the difference between the real value and cost of assets as a result of inflation and more encouragement of managers to use fair value for fixed assets, companies are required to provide conditions for evaluation. Accordingly, examining the use of asset sales as a way to manage real profits is of particular importance. In this way, the risk of adverse selection for shareholders can be reduced and the conditions for evaluating the actual performance of the manager are provided.  HypothesisCompany managers may be willing to sell assets when financing investment projects and when outsourcing is costly. In this paper, the goal is to review fixed asset disposal as a method of real earnings management. Thus research hypotheses have developed as follows:H1: If the sale of a company's assets leads to a forecast profit, companies will sell the assets for profit.H2: If the sale of company assets does not lead to the expected profit, companies will sell assets to increase losses.H3: The relationship between the transfer of assets for non-operating profit and the failure to meet the profit margin is stronger for companies that have large accruals on their balance sheets.H4: The relationship between the transfer of assets for non-operating losses and the failure to meet profit margins is stronger for companies with large accruals on their balance sheets.  MethodsThe purpose of this study is descriptive and is based on the nature and method of correlation. As this research can be used in the decision making process of investors, the type of applied research is considered. In this research, library method has been used to collect data and information. Then, for collecting the research data, compact discs, visual and statistical archives of the Tehran Stock Exchange, the official website of Tehran Stock Exchange and other related online databases have been used.For this purpose, data on 120 companies listed in Tehran Stock Exchange for the period of 2006 to 2019 were extracted and a logistic regression model was used to test the research hypotheses.  ResultsThe results show that the first and second hypotheses of the research are not confirmed but the third and fourth hypotheses are confirmed. The results of the first research hypotheses show that if the sale of firm’ assets will lead to predicted profit, companies are not approved for sale of assets in order to gain profits. Also, the second hypothesis, based on whether or not the sale of company assets achieves the expected profit, companies sell assets to increase losses has not been confirmed, but the relationship between the asset disposal to earn non-operational profits and failure to meet the profit criteria for the companies with extensive accrual on their balance sheet are confirmed. Finally, the fourth hypothesis, the relationship between the asset disposal to earn nonoperational loss and failure to meet the profit criteria for the companies with extensive accrual in their balance sheet are confirmed.  Discussion and ConclusionIn this study, the disposal of fixed assets as a way to manage real profits has been investigated. The first hypothesis of the research is that if the sale of the company's assets leads to a forecast profit, the companies will not sell the assets for profit. The results of this hypothesis are similar to the results of Herrmann et al. (2003). In this regard, it can be said that the goal of earnings management is to realize the management forecast of profits this year and next year. Sales managers schedule their fixed assets and investments in order to achieve the desired profit. Since the carrying amount of revalued assets is typically less than their market value (sales), the manager can manipulate the current period profit by selling the asset and identifying the gain from the increase in the asset in the period in question. Incremental profit management and decreasing profit management (Xu, Taylor, & Dugan, 2007). The second hypothesis of the study is that if the sale of company assets does not lead to the expected profit, companies will not sell assets to increase losses. The results of this hypothesis are similar to the results of Ebrahimi and Zakeri (2009). Managers do not want to lose their position in the capital market. Therefore, they focus their efforts on gaining profit (even if it is less than expected profit) and are reluctant to transfer unforeseen losses to the current period. The results of the third hypothesis are consistent with the research of Poitras et al. (2002). Investors and other users of financial information attach great importance to reported earnings. Accounting profit has information content and users use it based on their information needs. Accounting profit can be used to evaluate the performance of the business unit, management stewardship, cash forecasting, etc. Managers can change the level of accounting profit by choosing from accounting principles or standards in applying estimates and scheduling transactions such as the sale of assets. According to the results of the fourth hypothesis, the relationship between the disposal of assets for non-operating losses and the failure to meet the profit margin is confirmed for companies that have large accruals in their balance sheets. The results of this hypothesis are similar to the research of Sanjaya and Saragih (2012). Real profit management occurs during the current period and increases the loss for the company at the end of the period, and  to avoid losses, managers will manage the profit through optional accruals. When the company's actual profit is less than the managers’ expected profit, the managers try to bring the reported profit to the expected level by selling more assets, or vice versa, when the company's real profit is higher than the managers' expected profit, they try to bring the reported profit to the expected level by selling the assets that lead to the loss.

This paper investigates income smoothing through the asset sales. We tested income smoothing in the level of operating income. The test based on a linear multi-regression analysis for the companies listed in Tehran Exchange during 1381-1385. Investigation supports income smoothing so that managers use the gains and losses of the asset sales to smooth earnings. Our evidence also indicate that the level of smoothing in the companies that experience lower level of operating income is more than those which experiencing higher level of operating income.

Since management can set the time of real dealings such that its affects on the reported profit tend to decrease fluctuations of the reported profit and help gaining the expected profit, assets sales is believed to be one of the real dealings in all business companies. So, the aim of this research was to study whether managers manage profit through timing the long-lived assets sales? The companies admitted in Tehran Stock Exchange provide the statistical samples of this research. This is a causal-comparative research. T-Student Test is used to test the hypotheses. Firstly, using Covariance Analysis Test (Ancova), the relation between controlling variables and independent variables is found and the effect of controlling variables on independent variables is negated. The results of the research indicate that management has not done earning management through long-lived assets sales.

Issuance of asset sales declaration is one of the strategies of voluntary disclosure of information that can be used to measure and evaluate the correct market reactions and analyze the type of decisions taken in order to evaluate companies. Accordingly, the purpose of this study is to investigate the effect of voluntary disclosure of asset sales on the financial performance of companies using the data contained in the financial statements of 108 companies listed on the Tehran Stock Exchange in the period 2013 to 2019. The method of research is applied in terms of purpose, applied in terms of approach, rationalistic and in terms of nature because it causes the effect of several variables on a variable to be examined. It is also quantitative in nature and quantitative in duration. To test the hypotheses, the generalized least squares linear multiple regression model was used using the combined data. Findings from the study show that voluntary disclosure of asset sales has a positive and significant effect on companies' financial performance.

Related-party transactions are one of the major concerns in financial market scandals. So that the intended use of these transactions and the non-disclosure or insufficient disclosure has been a deteriorating factor for the enterprises. Recent scandals in the United States¡ such as Adelphia and the Riga family''s corporate group¡ and Hollinger and Conrad Black''s corporate group¡ have brought related-party transactions under the spotlight (Ge¡ Drury¡ Fortin¡ Liu & Tsang¡ 2010). It is alsoa great concern in Iran¡ since accounting standard No.12 is dedicated to related-party transactions. Related-party transactions can be used within these corporate groups in order to optimize internal resource allocation¡ reduce transaction costs¡ and improve return-on-assets. On the other hand¡ these transactions¡ if used opportunistically by management or other stakeholders¡ can produce misleading operating results and adversely affect minority shareholders'' wealth.
The FASB’s concerns about the non-arms-length nature of RP transactions raise concern about management and insider opportunism. FASB argues that potential wealth transfers can occur between the firm and the related parties¡ and RP transactions enable the firm to manipulate its financial statements (FASB¡ 1982). FASB’s concern about RP transactions clearly focuses on the lack of an arms-length transaction which makes RP transactions inherently susceptible to manipulation by management for their own gain. Furthermore¡ financial statement manipulation can interfere with accounting-based contracting and monitoring. The management opportunism view suggests the market will view RP transactions negatively (Kohlbeck & Mayhew¡ 2009).
Management opportunism was a key driver in the misappropriation of assets and misleading financial reporting in the recent frauds at Enron¡ Healthsouth and other firms. In many of these frauds¡ management allegedly used RP transactions both to enrich themselves and to generate misleading financial statements. For example¡ Enron engaged in a number of large purchases and sales with related entities producing earnings that would not have otherwise been recognized (Swartz & Watkins¡ 2003). At the same time¡ the transactions significantly increased the CFO and other officers’ wealth. Kalyta and Magnan (2008) document that powerful CEOs extract rents using executive pensions where the disclosures are of lower quality. Erickson et al. (2000) also describe in detail how RP transactions enabled Lincoln Savings and Loan to meet important regulatory capital constraints¡ but later led to its collapse. While RP transactions can be opportunistic¡ they can also potentially fulfill the underlying needs of the company. For instance¡ some companies make strategic investments in joint ventures to obtain and secure access to supplies or markets (e.g. vertical integration) and to manage risk. Transactions between RP and firms also generally involve less information asymmetry between the two parties¡ than is typically the case when the transaction occurs between the firm and a third-party.
Prior research documents that financial statements contain value relevant information. For example¡ Bao and Chow (1999) show that reported earnings and book values are significantly associated with share prices for sample firms issuing shares to foreigners. They also show that the combined explanatory power of earnings and book values has increased over time. Haw¡ Qi¡ and Wu (1999) document a significant association between stock returns and changes in earnings in both long-window and short-window studies. By using both return specifications and price specifications. Chen¡ Chen¡ and Su (2001) provide evidence that accounting information¡ including earnings and book value¡ is value relevant in the Chinese markets. Overall¡ the empirical evidence from prior research suggests that earnings and book values are value relevant to investors. We examine the value relevance of disclosed RPTs in corporations and focus on two types of RPTs: sales of goods and sales of assets.
The present study in terms of objective is categorized as an applied research¡ and in terms of the methodology is a descriptive research. And¡ among the descriptive studies¡ this is a correlational research. The analysis and test of the hypotheses were done according to the proposed hypotheses and functional definition of the dependent and independent variables based on the Pierson correlation coefficients and by using multi-variable regressionanalyze at the 5% Significance Level. Also¡ by defining the R2 coefficient¡ the changes of the dependent variables versus independent variables were analyzed. In the present study¡ the Student statistics (t) was used in order to investigate the accuracy of the research hypotheses and the Fischer statistics (f) was used in order to investigate the adequacy (efficiency) of the proposed model. Moreover¡ in order to investigate the normality of the data which is prerequisite of the accuracy test of the hypotheses¡ Kolmogorov-Smirnov test was used¡ and finally in order to analyze the hypotheses and supplementary tests in order to validate the regression model¡ Eviews software was applied. In order to achieve the above mentioned objectives¡ the following hypotheses are proposed:Hypothesis1: Sales of goods to related parties affects the earning relevance in determining the market value of shares.
Hypothesis2: Sales of assets to related parties affects the earning relevance in determining the market value of shares.
The following models were designed on the basis of Ge et al.’s 2010 model :Price it = β0 β1 BV it β2 EPS it β3 EPS it*S goods it ε it
Price it = β0 β1 BV it β2 EPS it β3 EPS it*S assets it ε it
where:Price: Stock price in end of year;
BV: book value of equity per share;
EPS: annual earnings per share;
Sgoods : dummy variable¡ coded 1 for firms selling goods to related parties and 0 otherwise;
Sassets : dummy variable¡ coded 1 for firms selling fixed assets to related parties and 0 otherwise.
Hypothesis1
Hypothesis2
According to the obtained EPS correlation coefficients (sig = 2.2131)¡ it can be concluded that there is a positive and significant relation between the EPS and the stock price of the companies¡ and it decreases to 0.0033 after including the interaction term EPS*Sassets. This represents a reduction of profits in companies that have related party transactions of sales of assets¡ but it is not significant¡ because the p-value of interaction term EPS*Sassets(0.413) is more than .005. As the valuation parameter of EPS in our valuation model is a function of earnings persistence¡ macro-economic and time-specific factors¡ this difference may not be caused by the standard. Our interaction terms distinguish the coefficient of EPS between firms with and without related-party sales during the same time-period¡ and we draw our inferences about the impact of the standard adoption from the coefficient estimates of the interaction terms. Prior research documents that financial statements contain value relevant information. For example¡ Bao and Chow (1999) show that reported earnings and book values are significantly associated with share prices for sample firms issuing shares to foreigners. They also show that the combined explanatory power of earnings and book values have increased over time. Haw¡ Qi¡ and Wu (1999) document a significant association between stock returns and changes in earnings in both long-window and short-window studies. By using both return specifications and price specifications. Chen¡ Chen¡ and Su (2001) provide evidence that accounting information¡ including earnings and book value¡ is value relevant in the Chinese markets. Overall¡ the empirical evidence from prior research suggests that earnings and book values are value relevant to investors.
The purpose of this study was to investigate the effect of related-party transactions on the value relevance of earnings in determining the market value of the shares of the companies listed in the Tehran Stock Exchange. This study focuses on two types of related-party transactions includingsales of goods and materials¡ and sales of fixed assets to related-parties. For achieving this purpose¡ 164 companies listed in Tehran Stock Exchange were analyzed during the years 2009 to 2015. Research hypotheses were tested using multiple regression and panel data methods with fixed effects Estimation method used for the analysis of survey data in multiple regression.
The results indicated that value relevance of earnings in determining the market value has been reduced in the companies that have related-party transactions using sales of goods and materials. Also¡ related-party transactions using sale of fixed assets did not have significant effects on value relevance of earnings in determining the market value of firm.

In recent decade, the phenomenon of income smoothing is remarkably has taken in to consideration by many financial and accounting researchers and authorities. Income smoothing is indeed a conscious manner that managers will usually proceed to for achieving some concrete purposes such as job security, rewarding, capital increase of company's shareholders and facilitating the ways for forecasting the issue of profitability. There are many techniques, methodologies and instrumentations for income smoothing which are mostly studied by accounting researchers. In the current research, the relationship between two variables of income smoothing and gain of selling capital assets in Iran has been investigated. In order to study the correlation between aforesaid factors, two groups of data have been utilized, the first group is based on Library studies and the second one is financial information in respect to these research variables, extracted from financial statements of approved companies in Tehran Stock Exchange during the years of 1382-1387. For the purpose of testing this research hypothesis, Panel Data Analysis has been chosen. The findings of this research explicate that there is no meaningful correlation between two variables of income smoothing and gain from selling the capital assets in Iran, since then the companies managers do not make use of this technique for smoothing the income despite of existing opportunities.

Selling fixed assets when current operating income is facing a decrease is one of the most important methods of real profit management among companies.In this research, the timing of the recognition of tangible fixed asset sales income in line with profit management and providing a model to measure it in the Iranian environment has been discussed.The current research has an inductive approach and in terms of the purpose of implementation, it is placed in the group of correlational analytical researches.The statistical population of the current research is the companies admitted to the Tehran Stock Exchange during a 10-year period from 1388 to 1397, which resulted in 124 samples and 1240 observations (company-years) using the systematic elimination method.In the test implementation phase, the explanatory power of the Ghani 2010 model and the proposed model have been estimated and tested, and the proposed model has shown a better fit in this field.The results of the profit management models test in the second stage show the reasonable explanatory power of both models and show a weak relationship with some variables.