Relationship between Enterprise Growth and Pricing of Discretionary Accruals in Small and Medium-Sized Enterprises

Since the positive discretionary accruals in enterprises with high growth are priced to a greater extent and pricing of positive discretionary accruals depend to enterprises information environment, the aim of this study is to investigate the relationship between enterprises growth and pricing of discretionary accruals in small and medium-sized enterprises. In this study the multivariate regression and EGLS panel method are used. The sample of study consists of 123 enterprises from 2011 to 2014. Results show that in small and medium-sized enterprises with low and high growth there is a direct and meaningful relationship between sensitivity of stock returns and discretionary accruals and also in small and medium-sized enterprises with low and high growth stock returns sensitivity to non-discretionary accruals is not significant. As a result, it seems that sensitivity of stock returns to discretionary accruals is more than non-discretionary accruals.