The purpose of this study is to investigate the type of earnings management in companies listed on the Tehran Stock Exchange (TSE) in terms of opportunistic or efficient earnings management. In addition, in this research we investigate the effect of three variables including firm size, deviation in operating activities and sales growth on the type of earnings management in companies listed on the TSE. For this purpose, we develop and test four hypotheses in four different modes by using multiple regressions. The results of testing first hypothesis show that type of earnings management selected by TSE listed firms tends toward efficient earnings management. Also, results of the other hypothesis tests indicate that efficient earnings management has a positive and significant relationship with deviation in firm operating activities and growth of firm sales; and a negative and significant relationship with firm size.
