Modeling of the real earning management resulted from investment activities.

Selling fixed assets when the current operating income is decreasing is essential for managing real earnings among companies. Therefore, this study aimed to design a model for realizing tangible fixed asset sales revenue and investments to address the real earning in the Tehran Stock Exchange. This inductive and correlational-analytical study was conducted on 138 companies listed on the Tehran Stock Exchange from 2010 to 2018, of which 1242 samples were selected using the systematic elimination method. First, the model of Gunny (49) and the proposed model were tested after passing the necessary assumptions and in a statistical sample, and the proposed model showed a better fit. In the second step, the remaining values of the two models were tested as real earning management with several other variables in a new model. The results showed both models’ reasonable explanatory power and a weak relationship with some variables. [ABSTRACT FROM AUTHOR]