Volume 29, Issue 1 (Spring 2024)                   JPBUD 2024, 29(1): 105-134 | Back to browse issues page

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Ghorbani Baravati N, Pourheidari O, Khodamipour A. (2024). Investigating the Impact of Real Earnings Smoothing on the Company's Labour Investment Efficiency. JPBUD. 29(1), 105-134. doi:10.61186/jpbud.29.1.105
URL: http://jpbud.ir/article-1-2264-en.html
Investigating the Impact of Real Earnings Smoothing on the Company's Labour Investment Efficiency
Negin Ghorbani Baravati1 , Omid Pourheidari * 2, Ahmad Khodamipour1
1- Shahid Bahonar University of Kerman
2- Shahid Bahonar University of Kerman , opourheidari@uk.ac.ir
Abstract:   (455 Views)
The purpose of this research is to investigate the impact of real earnings smoothing on labour investment efficiency company's. In order to test the research hypothesis, from financial information 96 firms from listed on Tehran stock Exchange in 2015 – 2022 have been used. The results that real earnings smoothing on abnormal net hiring has a negative and significant effect, which shows that real earnings smoothing lowers deviations of real net hiring away from the expected level. The results obtained from the hypothesis test are in accordance with the signaling theory regarding private information, real earnings smoothing conveys managers' private information about future earnings to stakeholders and by doing so, it reduces the information asymmetry between firms and external capital suppliers and inefficient labour Eventually, real earnings smoothing can help companies achieve high productivity and labour investment efficiency.
Keywords: Real earnings smoothing, Labour investment efficiency, Earnings management, information asymmetry, Tehran Stock Exchange
Full-Text [PDF 1522 kb]   (152 Downloads)    
Type of Study: Research | Subject: General
Received: Jan 21 2024 | Accepted: May 15 2024 | ePublished: Sep 09 2024
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