The Effect of the Management of the Pure Profit and Commitment Items Profit on Investment Choices

The purpose of the present research is to explore the effect of management of the pure profit and the commitment items profit on investment choices in Tehran stock broking. A model based on optional commitment items of Jones is used in the measurement of profit managing. The revenue of assets is also applied as an index of firm operation. Moreover, the effect of some variables of firms such as measure of accountant, independency of board of directors, institutional ownership and measure of firm on the relationship between profit managing and revenue of assets is evaluated. The function of analysis of mixed data by using a pattern including 100 firms in Tehran stockbroking from 2009 to 2012 was used. The research results showed that there is a meaningful negative relationship between optional commitment items and revenues of assets. Concerning several other tested variables, dependency of board of directors and the institutional ownership have a meaningful positive effect on relationship between profit management and revenue of assets, and measure of firm has a meaningful negative effect on the relationship