The accrual anomaly analysis at different stages of the corporate life cycle of companies listed on the Tehran stock exchange

Document Type : Research Paper


1 Department of Accounting, Faculty of Economics and Accounting, Islamic Azad University, Isfahan Branch (Khorasgan), Iran

2 Department of Accounting, Faculty of Economics, Management and Social Sciences, Shiraz University, Shiraz, Iran


Financial theorists believe that low accruals firms have higher returns compared to those with high accruals calling this relationship an accruals anomaly. Since the introduction of this concept, various studies have examined the factors causing accruals anomalies and their impact on corporate revenues. The current paper aims at investigating the impact of accruals anomalies on corporate profitability as well as the role of the corporate life cycle. Thus, the data was collected using 109 companies listed on the Tehran Stock Exchange data during the period 2012 to 2018.  Then, the relationships were examined using regression modelling with a panel approach. The results indicate that there is no significant impact of life cycle on the relationship between accrual anomalies and profitability.