Ephic Perfective of the Managers and Profit Management

Abstract

The effect of different factors on earnings management behavior is investigated in the study. Two important questions are issued in this study whether the moral status of the person plays a role in the likelihood of earnings management and whether the professional obligations of individuals affects on decision of earnings management or not? And provide hypotheses regarding to the determinants of earnings management behavior are compatible with pattern of the study or not. It has tried to identify the effects of ethical ideology on decision of earring management and relation of professional commitments of person on such decisions. Method of the study is selective and non-probabilistic which review the reports and documents in the first phase and distribute a questionnaire between cement and petrochemical company financial managers in the second phase to investigate the affecting factors on earnings management behavior through Pearson's correlation test and multiple regression model and simple linear. This study used financial executives of 37 cement and petrochemical companies accepted in Stock based on a proposed causal model that support from moral judgment about the difficulties in accounting or management. It is demonstrated empirically that individuals with higher levels of professional commitment are less likely to engage in earnings management operations and contrary to this, individuals with lower levels of profession commitment are more likely to engage in earnings management operations that are consistent with previous background. In addition the effect of earnings manipulation has been proven on both the moral status and professional commitment on individuals. This study suggests that when there is an opportunity to increase personal wealth temptation affects negatively on the moral status of the individual as well as the individual's professional commitment level. This result provides a better view of the importance of the ethical status on the behavior o