INVESTIGATION OF INCOME SMOOTHING AT THE COMPANIES LISTED ON THE STOCK EXCHANGE BY THE USING INDEX ECKEL: A CASE STUDY OF TEHRAN STOCK EXCHANGE

Investors, financial analysts and consumers interested in more information have about income smoothing in investee companies. Accounting is one of the techniques that are currently used in earnings management is income smoothing. This represents a deliberate act by the management to reduce the volatility of earnings. We have tried to investigate income smoothing in companies listed on the Stock Exchange. And to compare it with similar cases in previous years. Companies and see how much used of the income smoothing as an accounting technique. So we tried a 9-year period (2001-2009) to examine smoothing. For this purpose, using a stratified random sample of 132 companies from formula companies listed was chosen in Tehran Stock Exchange. To close resemblance to the sample, the first group of companies on the Stock Exchange was classified by category, then the proportion of firms in each group, were elected members of different groups. Resolution was used mechanism for smooth and non-smoothing companies Eckel model (coefficient of variation of a distribution of profits to sales). For this purpose, we have studied three levels of smoothing in net profit, gross profit, operating profit. And companies that have at least one level of profit required to smoothing have an income smoother we introduced with the previous results, we compared on the basis of the member companies of the number of firms smoothing was 78 and the number of companies, non-smoothing of 54 . Shows a slight increase compared to the previous research. However, we find that income smoothing is considered on three levels of profit.