A study on relationship between abnormal accruals and future profitability: Evidence from Tehran Stock Exchange
This paper presents an empirical investigation to study the relationship between future profitability and abnormal accruals on selected firms from Tehran Stock Exchange (TSE). The study selects 223 firms from TSE market over the period 2007-2011. Using the regression analysis, the study shows there...
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Growing Science
2013-11-01
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Online Access: | http://www.growingscience.com/msl/Vol3/msl_2013_297.pdf |
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doaj-110c3896329d476882019c89419356282020-11-25T02:25:52ZengGrowing ScienceManagement Science Letters1923-93351923-93432013-11-013112853285810.5267/j.msl.2013.09.022A study on relationship between abnormal accruals and future profitability: Evidence from Tehran Stock ExchangeMohammad Khodaei ValahzaghardSamaneh Refahi BakhshThis paper presents an empirical investigation to study the relationship between future profitability and abnormal accruals on selected firms from Tehran Stock Exchange (TSE). The study selects 223 firms from TSE market over the period 2007-2011. Using the regression analysis, the study shows there was no meaningful relationship between abnormal earnings and future profitability when the level of significance is five percent. There are also seven sub-hypotheses associated with the proposed study of this paper. The results indicate that while there were no meaningful relationship between firm size, ratio of book value to equity, capital expenditure, earnings quality, earning forecasted error and book value leverage on one side and future earnings, the study confirms a significance relationship between market leverage and future earnings.http://www.growingscience.com/msl/Vol3/msl_2013_297.pdfTehran Stock ExchangeFuture profitabilityAbnormal AccrualsAccruals |
collection |
DOAJ |
language |
English |
format |
Article |
sources |
DOAJ |
author |
Mohammad Khodaei Valahzaghard Samaneh Refahi Bakhsh |
spellingShingle |
Mohammad Khodaei Valahzaghard Samaneh Refahi Bakhsh A study on relationship between abnormal accruals and future profitability: Evidence from Tehran Stock Exchange Management Science Letters Tehran Stock Exchange Future profitability Abnormal Accruals Accruals |
author_facet |
Mohammad Khodaei Valahzaghard Samaneh Refahi Bakhsh |
author_sort |
Mohammad Khodaei Valahzaghard |
title |
A study on relationship between abnormal accruals and future profitability: Evidence from Tehran Stock Exchange |
title_short |
A study on relationship between abnormal accruals and future profitability: Evidence from Tehran Stock Exchange |
title_full |
A study on relationship between abnormal accruals and future profitability: Evidence from Tehran Stock Exchange |
title_fullStr |
A study on relationship between abnormal accruals and future profitability: Evidence from Tehran Stock Exchange |
title_full_unstemmed |
A study on relationship between abnormal accruals and future profitability: Evidence from Tehran Stock Exchange |
title_sort |
study on relationship between abnormal accruals and future profitability: evidence from tehran stock exchange |
publisher |
Growing Science |
series |
Management Science Letters |
issn |
1923-9335 1923-9343 |
publishDate |
2013-11-01 |
description |
This paper presents an empirical investigation to study the relationship between future profitability and abnormal accruals on selected firms from Tehran Stock Exchange (TSE). The study selects 223 firms from TSE market over the period 2007-2011. Using the regression analysis, the study shows there was no meaningful relationship between abnormal earnings and future profitability when the level of significance is five percent. There are also seven sub-hypotheses associated with the proposed study of this paper. The results indicate that while there were no meaningful relationship between firm size, ratio of book value to equity, capital expenditure, earnings quality, earning forecasted error and book value leverage on one side and future earnings, the study confirms a significance relationship between market leverage and future earnings. |
topic |
Tehran Stock Exchange Future profitability Abnormal Accruals Accruals |
url |
http://www.growingscience.com/msl/Vol3/msl_2013_297.pdf |
work_keys_str_mv |
AT mohammadkhodaeivalahzaghard astudyonrelationshipbetweenabnormalaccrualsandfutureprofitabilityevidencefromtehranstockexchange AT samanehrefahibakhsh astudyonrelationshipbetweenabnormalaccrualsandfutureprofitabilityevidencefromtehranstockexchange AT mohammadkhodaeivalahzaghard studyonrelationshipbetweenabnormalaccrualsandfutureprofitabilityevidencefromtehranstockexchange AT samanehrefahibakhsh studyonrelationshipbetweenabnormalaccrualsandfutureprofitabilityevidencefromtehranstockexchange |
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