Abstract

<jats:sec><jats:title content-type="abstract-subheading">Purpose</jats:title><jats:p>The purpose of the present research is to examine the effect of internal control and risk management on earnings quality of companies listed on the Tehran Stock Exchange (TSE).</jats:p></jats:sec>
<jats:sec><jats:title content-type="abstract-subheading">Design/methodology/approach</jats:title><jats:p>Data were collected from 560 listed firms on TSE, which were selected using systematic sampling. Descriptive statistics, Pearson correlation and panel data regression were used for data analysis during 2009-2014.</jats:p></jats:sec>
<jats:sec><jats:title content-type="abstract-subheading">Findings</jats:title><jats:p>The results showed that earnings management reduces earnings relevance and book value relevance through short-term and long-term discretionary accruals.</jats:p></jats:sec>
<jats:sec><jats:title content-type="abstract-subheading">Originality/value</jats:title><jats:p>The outcomes of the current study are quite interesting to academia and practitioners.</jats:p></jats:sec>