earnings management has inverted the main objective of financial reporting through the distortion of the actual economic performance of companies and prevented the complete transfer of information to market. given the importance of subject of research, incentives that cause earnings management have been reviewed from various aspects. the main purpose of this research is to examine the relations...

Abstract We provide evidence on earnings management by exploiting temporary exogenous shocks to utility firms’ sales arising from weather variation. find that sample are highly sensitive annual changes in average temperatures the region where firm operates, but this sensitivity disappears quickly as one moves down income statement. This evidence, while indirect, is suggestive of activities. In ...