Investigating the Relationship of Accrual Components and Stock Trading Costs

Document Type : Original Article

Authors

1 Associate Professor of Accounting Shahid Bahonar University of Kerman

2 PhD student of Accounting, University of Mazandaran- Babolsar

Abstract

     Asymmetric distribution of information by companies in the capital market, barrier of Smooth stock exchange and increase stock trading costs. The purpose of this study is to investigate the relationship between accrual components and stock trading costs. Statistical population research are listed companies in Tehran Stock Exchange for a period of time 10 years that of between them systematic method was selected the elimination a sample of 66 companies in the period 2003-2013. To separate the components of accruals Kaznyk adjusted model (1991), and in order to calculate stock trading costs of quoted and effective spread model research Lei (2013),is used. To test the hypothesis of multivariate regression model was used. The results of the research hypothesis test shows that Positive and significant relationship accrual components and stock trading costs. In addition, these findings suggest that positive accruals components are positive impact higher in compare to negative accruals components on stock trading costs. Findings indicate that, investors because interpret the heterogeneity that of Accrual Components. Different behaviors indicate about information content accruals components. This subject has led to asymmetric effects occur at the stock trading costs.

Keywords

Accounting and Auditing Research
Volume 9, Issue 34
July 2017
Pages 24-41

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