Mohammad Reza Abbaszadeh; Mahbubeh Kazemi; Abdollah Azad
Abstract
This Paper investigates the link between accrual and cash flow components of
earnings and future abnormal earnings and Equity Values. The base of tests in This
paper is Ohlson (1999) model and net income, equity book value and return on
equity book value, is the variables that used in this paper. ...
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This Paper investigates the link between accrual and cash flow components of
earnings and future abnormal earnings and Equity Values. The base of tests in This
paper is Ohlson (1999) model and net income, equity book value and return on
equity book value, is the variables that used in this paper. The statistical population
of this research is the firms accepted in the Tehran stock exchange that examined for
the time period between 2000 & 2009 by 132 firms as the sample.
The results of empirical tests indicate that as predicted, accruals are incrementally
informative regarding future abnormal earnings. Moreover, cash flows are
significantly incrementally informative regarding future abnormal earnings. The
results also reveal that the findings relating to accruals and cash flows in the
abnormal earnings equations are “mirror images” of each other. The results also
indicate that the accrual and cash flow components of earnings are incrementally
valuation relevant.
Mohammad reza abbaszadeh; Hojatollah atashi golestani
Abstract
Since 2001 the adoption of Iran accounting standards has become obligatory. This study by using a sample of companies listed in Tehran stock exchange (TSE) compares the value relevance of ten selected accounting variables in two periods, before mandatory adaption of accounting standards (1996-1998) and ...
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Since 2001 the adoption of Iran accounting standards has become obligatory. This study by using a sample of companies listed in Tehran stock exchange (TSE) compares the value relevance of ten selected accounting variables in two periods, before mandatory adaption of accounting standards (1996-1998) and after that (2005-2007). In this study the researchers have tried to control the effect of economic situations and omitted variables on the results of research. Therefore, two economic variables, inflation (CPI) and growth of gross domestic product (GGDP) are added to regression models of hypothesis. Also, hypotheses are tested by pooled method. Results show that, a relation between some accounting variables and stock return in both periods (before and after adoption of standards). The result of test of hypothesis of the third group indicates that there is significant decrease in adjusted R-Square of regression models in post-standards comparing with pre-standards period about five variables of total assets and its changes, operating income and its changes, book value of equity and in a model involving all variables of study, but decrease of predictive ability of net income, cash flows from operation and their changes and changes of book value of equity isn’t significant.
