Abstract

Profit is an important criterion in the decision making and assessment of users of financial statements. On the other hand, the importance and level of financial data retention in the decision making of interest groups are clear to everyone in the modern world. It is worth mentioning that the information needs of users of financial statements are different. Providing information through the appropriate disclosure in financial statements to the extent that it is possible to predict the profit trend, profitability continuity, management performance, etc. will be useful in the decision making the process of the users. With regard to the profit criteria and the degree of reliance on financial information, this study aimed at investigating the effect of profit management and disclosure size on actual financial performance. In addition to the variable of disclosure and accruals (as the independent variable) and return on assets and return on equity (as dependent variables), the controlling variables of the financial leverage, the life of the company, the size of the company and capital expenditures were also used during the research. The statistical sample of the research includes the company during the period of 2008-2013. The analysis and testing of the hypotheses were done by Eviews statistical software and panel data. The results of the research show that the disclosure index of accrual accounting has a meaningful relationship with the index of return on assets and equity returns.