Authors : Soodabeh Rostami and Babak Jamshidinavid
Abstract: The present study aimed to identify measures of earnings quality and effective income smoothing, the stock pricing error, the comparison of metrics profit stability, predictability profit, profit ratio of standard deviation, the standard deviation of cash flows non-accrual normal accrual quality, earnings response coefficient correlation between accruals and cash flows and R2 on stock excess returns of companies listed on the Tehran Stock Exchange is paid. This study in terms of performance is descriptive. The population of 102 companies listed in Tehran Stock Exchange during the period 2007-2014. The results of the data analysis and test hypotheses suggest that between the above criteria and excess return, a significant relationship exists with the exception of the measure of correlation between accruals and cash flows and R2 that significant effects are not. As well as income smoothing measures, the profit standard deviation, standard deviation of cash flows, negative impact on the absolute value added efficiency and measure the correlation between accruals and cash flow is unaffected and in measures of earnings quality also for companies with high earnings quality, standard R2 and the correlation between accruals and cash flow was unaffected and in companies with low earnings quality, the criterion for predictability of earnings and R2 no significant effect.
Soodabeh Rostami and Babak Jamshidinavid, 2016. The Compression of Earnings Quality Measures Impact and Smoothing Earnings on the Excess Return in the Companies Listed on the Tehran Stock Exchange. International Business Management, 10: 6524-6528.