This paper seeks to model for valuating of the variables affecting on earnings management, in order to make strategic decisions in the process of financial management in insurance companies. Accordingly, in this research, necessity of recognition of earnings management is explained, and to model the GMDH neural network, due to its high performance in forecasting, and based on the 4-methods; TA-adjusted profit and loss, TA Balance Sheet, adjusted TA Jones Model and TA gains and losses, have been used. Results showed that, net profit after tax has the double effect, operational cash flow, p / b and p / E ratio are effective variables, and net fixed assets + depreciation, changes in first accounts receivable, are omitted variables (low-impact). According to results, therefore, the net profit after tax in the total accruals, is the most important variable and TA gains and losses, is the best method of evaluation criteria errors
Ahrari M, Hossini H, Bayat S. Extract of Effective Indexes on Earnings Management in Insurance Companies. TFI 2016; 1 (2) :89-126 URL: http://tfe.raja.ac.ir/article-1-63-en.html