Analyzing the Relationship between Earnings Transparency and Excess Return of the Companies in Tehran Stock Exchange

International Journal of Economics and Management Studies

© 2015 by SSRG - IJEMS Journal

Volume 2 Issue 9

Year of Publication : 2015

Authors : Samira Pahlavan, Ghodratollah Talebnia

10.14445/23939125/IJEMS-V2I5P101

How to Cite?

Samira Pahlavan, Ghodratollah Talebnia, "Analyzing the Relationship between Earnings Transparency and Excess Return of the Companies in Tehran Stock Exchange," SSRG International Journal of Economics and Management Studies, vol. 2,  no. 9, pp. 1-10, 2015. Crossref, https://doi.org/10.14445/23939125/IJEMS-V2I5P101

Abstract:

The purpose of this study is to evaluate the impact of earnings transparency on excess return in the companies listed in Tehran Stock Exchange. Therefore, historical data of 108 companies listed on the Stock Exchange within the period 2007-2012 were collected and then analyzed using descriptive statistics and panel data model. The results showed that increase in the earnings transparency will lead to excess returns. This means that there is a direct relationship between earnings transparency and excess returns. Then the results indicated that there is an inverse and significant relationship between the company value and excess returns and a direct and significant relationship between the systemic risk, firm size and growth rate with earned excess returns. Also the relationship between growth opportunities, negative stock returns, relative changes in operating cash flows, liquidity and the volatility of p/e ratio with earned excess returns is not statistically significant.

Keywords:

earnings transparency, excess return, Tehran Stock Exchange

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