THE BOOK-TAX CONFORMITY & EARNINGS MANAGEMENT IN THE TEHRAN STOCK EXCHANGE

In most countries,the government's revenue sources come from taxes. Creating the right structure, either in terms of drafting laws and regulations Taxes and, organizationally, for tax-based and justice-based, It is a desirable tax system that has the most favorable economic effects. Considering the concern about the tax status of companies accepted in the stock exchange as well as the incentive of management in smoothing firms's profits to adapt it to the tax situation, in this study, the relationship between tax compliance and earning management in companies accepted in Tehran Stock Exchange including 236 companies between 2010 and 2015 will be tested. Using the modified Jones and other Models , the results show that there is a significant and positive relation between book- tax conformity and earnings management.