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Paper Information

Journal:   JOURNAL OF ASSET MANAGEMENT AND FINANCING   WINTER 2016 , Volume 3 , Number 4 (11) ; Page(s) 15 To 30.
 
Paper: 

INVESTIGATING THEINVESTORS’ CONFIDENCE FROM RATE OF STABILITY OF ACCRUALS COMPONENT IN TEHRAN STOCK EXCHANGE

 
 
Author(s):  AGHAEI MOHAMMAD ALI, NIKZAD GHADIKOLAEE MAHDIS, AHMADIAN VAHID*
 
* TARBIAT MODARRES UNIVERSITY, IRAN
 
Abstract: 

The aim of this study is to investigate perception ability investors from rate of stability of accruals component in comparison with the cash component in predictions of future earnings in Tehran Stock Exchange. For this purpose, first, stability of accruals earnings and its components (net working capital, non-current operating assets and financial assets) has been compared with cash earnings component and based of this comparison and the reaction of investors to this item, the inexperienced investor hypothesis in Tehran Stock Exchange conclusion has been investigated. This study is implemented using combined data with a sample of 142 firms in Tehran Stock Exchange in the period of 1382 to 1391. Research findings indicate that stability of earnings accruals and their components is less than cash component, but investors make mistake in prediction that accrual component is less stable compared to cash component due lack of experience. Proving the existence of accrual anomaly in the Iranian capital market will be effective in stock valuation models.

 
Keyword(s): ACCRUALS COMPONENT, CASH EARNINGS COMPONENT, ACCRUALS ANOMALY, STOCK RETURNS, INEXPERIENCED INVESTOR HYPOTHESIS
 
References: 
  • ندارد
 
  Persian Abstract Yearly Visit 70
 
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