Examining the information content in the profitability of accepted companies in Tehran Stock Exchange

Document Type : Original Article

Authors

1 Department faulty university of Tehran/Iran

2 Ph.D Assistant Professor of accounting Azad University, Centeral Tehran, Iran

10.22034/iaar.2021.134616

Abstract

One of the most important factors in explicit decision making is having appropriate information related to the subject of the decision which, if not properly provided and processed, will have negative effects on the decision maker. Therefore, one of the most important basic financial statements that managers use to inform the market of the company's performance is the profit and loss statement. The purpose of disclosing this information is to reduce the incorrect distribution of information influencing users' decision-making in the capital market. Therefore, the purpose of this study is to investigate the information content of the profitability of companies listed on the Tehran Stock Exchange. In this research, quarterly information of 138 companies listed on the Tehran Stock Exchange for the fiscal years 1393 to 1397 was selected.
The results of quantitative research regression model showed that there is a significant and negative relationship between changes in expected market returns and profitability in the lower quartiles and also in the upper quartiles of the research.
The results of the second hypothesis of the research indicate that there is a significant and positive relationship between the expected changes in sales growth and profitability in the upper quarters.

Keywords

Accounting and Auditing Research
Volume 13, Issue 50
July 2021
Pages 145-162

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