Abstract
The present study evaluates the correlation between some features of earning quality to financial crisis. So some prevalence model in subject literature is used for calculating the earning quality indexes, as well as three general criteria and two native criteria is applied for evaluating the possible incidence of financial distress and bankruptcy. So the information of 3371 years was gathered and the statistical tests of research hypothesis were studied. The results of study demonstrated that in the majority of cases, there is meaningful correlation between financial distresses to earning quality. Also this correlation was meaningful for special definition of bankruptcy in the business legislation of Islamic Republic of Iran. The present study by classification of different companies in four portfolios based on the degree of financial health (impossible for bankruptcy) concluded that the correlation in the last portfolio (unhealthy companies in the terms of financial distress) is more meaningful than companies in the other portfolios. Meanwhile, the results of the study showed that the degree of using the accrual items in different portfolios that ranked with regard to the possibility of bankruptcy is various. At the end, we obtained similar results with evaluating the distribution method of exploiting of accrual items in the classified companies according to article no. 141 of business legislation. So there is curved in the distribution of utilization degree of accruals inthe bankrupt companies.
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