Value relevance of accounting earnings associated with normal and abnormal returns

Authors

Abstract

The value relevance of earnings and the changes related to normal and abnormal returns have been studied in this research. Thus, according to theory and literature, for data analysis, five regression models were used. Statistical Society consists of accepted companies in Tehran Stock Exchange from 1384 to 1389 and due to current limitations the studied samples include 74 companies. Results from data analysis show that accounting earnings has Value relevance for users. In other words, both annual normal and abnormal returns have a significant relation with the accounting earnings. It means accounting earnings has a direct and significant relation to normal return, but also has a negative and significant relation to abnormal return. The announcement of accounting earnings effect on stock price and it Causes positive or negative return.

Keywords

References

آقایی، محمد علی؛ اعتمادی، حسین؛ آذر، عادل و پری چالاکی. (1388). ویژگی‌های حاکمیت شرکتی و ارتباط ارزشی سود در بورس اوراق بهادار تهران با تاکید بر نقش مدیریت سود. فصلنامه علوم مدیریت ایران، شماره (16)، 27-53. 
برادران حسن‌زاده، رسول؛ تقی‌زاده، هوشنگ و عباس‌رضایی. (1389). بررسی تاثیر ترکیب سهامداران بر محتوای اطلاعاتی سود حسابداری شرکت‌های پدیرفته شده در بورس اوراق بهادار تهران. پژوهش‌های حسابداری مالی، شماره (8)، 107-124.
علوی طبری، سیدحسین و سیده سمیه موسوی. (1390). محتوای اطلاعاتی سود خالص و تعدیل قیمت سهام. فصلنامه پژوهش‌های تجربی حسابداری، شماره (1)، 7-19.
هاشمی، سید‌عباس و رحمان ساعدی. (1388). بررسی تاثیر ویژگی‌های خاص شرکتها بر محتوای اطلاعاتی سود و جریان نقد عملیاتی در توضیح بازده سهام. فصلنامه پژوهش‌های حسابداری مالی،شماره (4)، 108-130.
Abarbanell, Jeffery, & Kim Sangwan. (2010). “Why Returns on Earnings Annouuncement Days are More Informative than Other Days”. Kenan- Flagler Business School University of North Carolina at Chapel Hill.
Alford, A; Jones, J; Leftwich,R and R. Zmijewski. (1993). The Relative Informativeness of Accounting Disclosures in Different Countries. Journal of Accounting Research, vol (31), pp 183-223.
Ali, A and P. Zarowin. (1992). The Role of Eearnings Levels and Annual Earnings-Returns Studies. Journal of Accounting Research, vol(32), pp. 61-74.
Anandarajan, A and I Hasan. (2010). Value relevance of earnings. Journal of Advances in Accounting, incorporating Advances in International Accounting, vol (26), 270-279.
Ball, R and P Brown.(1968). An Empirical Evaluation of Accounting Income  Numbers. Journal of Accounting Research, vol (6),159-178.
Ball, R; Watts, R. and B. Lev (1979). Income variation and Balance Sheet composition. Journal of Accounting Research, Vol (14), PP.1-9.
Barth, M; Beaver, W and W Landsman. (2001). The Value Relevance of the Value Relevance Literature for Financial Accounting Standard Setting: another view. Journal of Accounting and Economics, Vol (3), 77-104.
Burgstahler, D.C and I. D Dichev. (1997). Earnings, adaptation and equity value. The Accounting Review, vol(72), 187-215.
Daraghma, Zahran. (2010). The Relative and Incremental Information Content of Earnings and Operating Cash Flows: Empirical Evidence from Middle East, the Case of Palestine. European Journal of Economics, Finance and Administrative Sciences, 52.
Easton, P; Harris, R., and J Ohlson. (1992). Aggregate accounting earnings can explain most of security returns: the case of long return intervals. Journal of Accounting and Economics, vol(15), 119-142.
Jacobsen, R and D. Aaker. (1993). Myopic management behavior with efficient, but imperfect, financial markets. Journal of Accounting and Economics, vol(16), 383-405.
Kwon,J,G. (2009). The Value Relevance Of Earnings And Book Value Using An Option-style Equity Valuation Model:Evidence from korea. International Journal of Business And Mangment, vol4, 19-41.
Ohlson, J. A. (1995). Earnings, book values, and dividends in equity valuation. Contemporary Accounting Research,vol (11), 661–687.
Ou, J. (1984). The Information Content of Nonearnings Accounting Numbers as Earnings Predicto«. Ph.D. dissertation, Universuty of California, Berkeley.

Files

History

  • Receive Date: 10 December 2012
  • Revise Date: 30 January 2021
  • Accept Date: 12 September 2013

Share

How to cite

Statistics