Impact of accrual quality on non-cash flow shock stock returns

One of the most important factors in selecting the best investment is stocks return. Considering the relationship between stock return and other accounting information, investors are able to allocate their own resources in the best manner. Accruals quality is one of the factors which affects on stoc...

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Main Authors: Daruosh Foroghi, Hadi Amiri, Mina Mohammadian
Format: Article
Language:fas
Published: University of Tehran 2014-06-01
Series:بررسی‌های حسابداری و حسابرسی
Subjects:
Online Access:https://acctgrev.ut.ac.ir/article_51723_3e4435fe335c722fdf686d431bb24765.pdf
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spelling doaj-99fbf8456fa24fd5b6fdb5e4dd55b6982020-11-25T02:06:40Zfas University of Tehranبررسی‌های حسابداری و حسابرسی2645-80202645-80392014-06-0121217318810.22059/acctgrev.2014.5172351723Impact of accrual quality on non-cash flow shock stock returnsDaruosh Foroghi0Hadi Amiri1Mina Mohammadian2Assistant Prof., Accounting, University of Isfahan, Isfahan, Iran.Assistant Prof., Economics, University of Isfahan, Isfahan, IranMSc. Accounting, University of Isfahan, Isfahan, Iran.One of the most important factors in selecting the best investment is stocks return. Considering the relationship between stock return and other accounting information, investors are able to allocate their own resources in the best manner. Accruals quality is one of the factors which affects on stocks return. For so doing, a sample of 79 firms listed in Tehran Stock Exchange has been investigated in 2001-2012 time interval. In the current research, using a simple method based on Earning Response Coefficient (ERC), established stocks returns have been divided into non- cash flow shock and cash flow shock. The results indicate that stocks with good (poor) accrual quality are subject to relatively lower (higher) non-cash flow shocks. Overall, this study underscoperes the importance of controlling for cash flow shocks in asset-pricing tess that use realized returns.https://acctgrev.ut.ac.ir/article_51723_3e4435fe335c722fdf686d431bb24765.pdfaccrual qualitycash flow shockStock Return
collection DOAJ
language fas
format Article
sources DOAJ
author Daruosh Foroghi
Hadi Amiri
Mina Mohammadian
spellingShingle Daruosh Foroghi
Hadi Amiri
Mina Mohammadian
Impact of accrual quality on non-cash flow shock stock returns
بررسی‌های حسابداری و حسابرسی
accrual quality
cash flow shock
Stock Return
author_facet Daruosh Foroghi
Hadi Amiri
Mina Mohammadian
author_sort Daruosh Foroghi
title Impact of accrual quality on non-cash flow shock stock returns
title_short Impact of accrual quality on non-cash flow shock stock returns
title_full Impact of accrual quality on non-cash flow shock stock returns
title_fullStr Impact of accrual quality on non-cash flow shock stock returns
title_full_unstemmed Impact of accrual quality on non-cash flow shock stock returns
title_sort impact of accrual quality on non-cash flow shock stock returns
publisher University of Tehran
series بررسی‌های حسابداری و حسابرسی
issn 2645-8020
2645-8039
publishDate 2014-06-01
description One of the most important factors in selecting the best investment is stocks return. Considering the relationship between stock return and other accounting information, investors are able to allocate their own resources in the best manner. Accruals quality is one of the factors which affects on stocks return. For so doing, a sample of 79 firms listed in Tehran Stock Exchange has been investigated in 2001-2012 time interval. In the current research, using a simple method based on Earning Response Coefficient (ERC), established stocks returns have been divided into non- cash flow shock and cash flow shock. The results indicate that stocks with good (poor) accrual quality are subject to relatively lower (higher) non-cash flow shocks. Overall, this study underscoperes the importance of controlling for cash flow shocks in asset-pricing tess that use realized returns.
topic accrual quality
cash flow shock
Stock Return
url https://acctgrev.ut.ac.ir/article_51723_3e4435fe335c722fdf686d431bb24765.pdf
work_keys_str_mv AT daruoshforoghi impactofaccrualqualityonnoncashflowshockstockreturns
AT hadiamiri impactofaccrualqualityonnoncashflowshockstockreturns
AT minamohammadian impactofaccrualqualityonnoncashflowshockstockreturns
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