ANALYZING THE EFFECT OF DEMAND AND SUPPLY STOCK INFORMATION ON PROFIT MANAGEMENT IN COMPANIES LISTED IN TEHRAN STOCK EXCHANGE

This study analyzes the effect of demand and supply stock information on Profit Management in companies listed in Tehran Stock Exchange. This study is of applicable in the sense of goal, and is of correlation in the sense of nature and methods. The population of this study all the companies listed in Tehran Stock Exchange, the number of which is based on the entry criteria (the company must have been listed in stock exchange before the year 2013, the companies that have been profitable during the mentioned period, companies that have shared their profit, companies that have investment in financial assets.), which included 65 companies in 2013. The mass of 57 companies were randomly chosen among the mentioned population based on Cochran formula. The data were analyzed through descriptive and inferential statistics including one-way analysis of variance, paired T, and Pearson; and in order to analyze data normality, the Shapiro-Wilik test was used. The results demonstrate that a relationship exists between dividend hypersensitivity and increase in earnings management in Tehran Stock Exchange, and there is a relationship between increased sensitivity of stock prices and error forecast in Tehran Stock Exchange. Finally, information of supply and demand for shares is influential on profit management.