Mahdi Moradi; Mohammad ali Fallahi; Mohsen Kami
Abstract
So far, the financial experts could not calculate independent earnings to have a necessary quality. In this case, they can reach a range of earnings, which show a more correct form of quality of earnings, of course with performing the suitable equitabilities. Therefore, the concept of quality of earnings ...
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So far, the financial experts could not calculate independent earnings to have a necessary quality. In this case, they can reach a range of earnings, which show a more correct form of quality of earnings, of course with performing the suitable equitabilities. Therefore, the concept of quality of earnings is not a fixed defining. However, it is a relative concept that depends to its relation to points of view and attitudes. In this research quality of earnings is based a set of fundamental financial variables which has been discerned useful by financial analysts in the security evaluation. They believe that these financial variables would be used by investors in the evaluation of quality of earnings.
The earnings response coefficient measure unexpected return of the market in response to the unexpected components of the reported earnings by the company that has distributed the securities. In other word, earnings response coefficient is the sensitivity of market in account to declaration of earnings.
The purpose of this research is to study the effect of quality of earnings on earnings response coefficient. The results show that earnings response coefficient do not have meaningful differences in the companies that have different earnings quality (high, medium and low quality). In other words, investors in Tehran Stock Exchange do not consider the quality of earnings of companies at the time of response to the earnings changes.
Ali Akbar Naji Meidani; Mohammad Ali Falahi; Maryam Zabihi
Abstract
The purpose of this study is to examine the dynamic effects of some macroeconomic variables: money stock, gross domestic product, consumer price index and exchange rates on determining housing price index behavior in Iran using the error correction model. Using seasonal data, the model is estimated by ...
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The purpose of this study is to examine the dynamic effects of some macroeconomic variables: money stock, gross domestic product, consumer price index and exchange rates on determining housing price index behavior in Iran using the error correction model. Using seasonal data, the model is estimated by Johansen-Juselius cointegration approach during 1990-2007. The results reveal that all variables have a significant and positive relationship with housing price index. Forecast error variance decomposition shows that a large amount of house price changes can be explained by the variable itself until the fifth period, and with the increase of lag periods, share of gross domestic product, exchange rates, money and consumer price index would increase in explaining housing price index fluctuations. Furthermore, the response of housing price index to one standard deviation impulse in the aforementioned variables results in housing price index increase, and it returns to the permanent level after ten periods. The value of error correction coefficient is equal to -0.17 and is statistically significant; therefore, about 17 percent of housing price disequilibrium would be adjusted in each period. With regard to the nature of housing sector in Iran, such slow adjustment seems to be quite rational.
