The Relationship between Corporate Leadership Mechanisms and Income Smoothing on the Stock Exchange in Tehran Moqaddam Abolfazl Qadiria, Filsaraei Mahdib, Dolati Malihehc, Jahani Fatemeh, Mahvashi Ameneh, Sharifan Hamed, Namvar Abolfazl, Mojarrad Mousa aAssistant Professor and head of Hakiman non-profit, Institution of Higher Education bDepartment of accounting, Mashhad Branch, Islamic Azad University, Mashhad, Iran cMA student of Accounting, Hakiman University of Bojnord Online published on 9 November, 2015. Abstract After the bankruptcy of large companies in America, followed by Europe and the rest of the world, many shareholders have lost confidence in capital markets and corporate governance regulations became the most important tool to restore the confidence of investors. Since then, corporate leadership approach and its relationship with different variables has become the study subject of many researchers. This study examines the relationship between corporate leadership mechanismsand income smoothing. For this, 138 companies of listed companies on the Stock Exchange in Tehran has been chosen and the data neededwere reviewed over a period of nine years from 2005 to 2013. To infer the presence or absence of a significant correlation between the percentage of ownership of institutional investors, the percentage of outside board members, and internal audit firm (independent variables) with incomesmoothing (the dependent variable) three hypotheses were tested. Using regression, ordinary least squares, variables coefficients and the impact of those variables were specified. Then using the coefficient correlation of Spearman, study hypotheses were tested. Extracted results confirm the meaningful correlation between all three mechanisms chosen for corporate leadership with income smoothing. Thus with assuring percentageof 95 the presence of internal audit and increasing the percentage of ownership of institutional investors lead to a reduction in income smoothing, but there is a positive relation between the percentage of outside board members and profit smoothing. Top Keywords Corporate Leadership, Internal Audit, Institutional Investors, Outside Boardmembers, Income Smoothing. Top |