Effect of Conservative Reporting on Investors' Opinion Divergence at the Time of Earnings Announcement
Journal Title: Advances in Mathematical Finance and Applications - Year 2018, Vol 3, Issue 2
Abstract
This research aims to investigate the effect of conservative reporting on the investors' opinion divergence at the time of earnings announcement in a 5 year period during 2012-2016; the required data have been collected from Tehran Securities and Stock Exchange Organization and the population is consisted of 585 corporates-years which have been selected by the systematic removal sampling. To investigate the research hypotheses, linear regression and correlation were used and to analyze data and test the hypotheses, Eviews software has been utilized. In conclusion, it can be pointed out that the conservative measures are negatively related to the proxies of investors' opinion divergence at the time of earnings announcement and the relationship is stronger when the corporate reports bad news; also, conservation information content is stronger when the market is shocked by an announcement. Key words: Investors' opinion divergence at the time of earnings announcement, conservative reporting, bad news
Authors and Affiliations
Dariush Mokhtari Kajori, Reza Gholami Jamkarani
Keywords
Related Articles
- EP ID EP459893
- DOI 10.22034/AMFA.2018.540833
- Views 67
- Downloads 0
An Analysis of the Repeated Financial Earthquakes
Since the seismic behavior of the earth’s energy (which follows from the power law distribution) can be similarly seen in the energy realized by the stock markets, in this paper we consider a statistical study for compar...
Evaluation of the association between company performance and Iran’s stock market liquidity
This research studies the companies’ effectiveness and performance relationship with stock market liquidity in Tehran Stock Exchange during 2010-2015. Simultaneously, in the study, the three indicators: return on assets,...
Assessment of the efficiency of banks accepted in Tehran Stock Exchange using the data envelopment analysis technique
The research provides a systematic method for assessing the financial performance of the banks. The analysis is based on a set of benchmarks related to the financial performance of the banks. In this regard, this researc...
A Fuzzy Random Walk Technique to Forecasting Volatility of Iran Stock Exchange Index
Study of volatility has been considered by the academics and decision makers dur-ing two last decades. First since the volatility has been a risk criterion it has been used by many decision makers and activists in capita...
The Effects of Accruals and Cash Flow Anomalies on Net Profit and Abnormal Stock Returns in Accepted Companies in Tehran Securities Exchange
Reliability and efficacy of accruals and cash flows which are among the most important factors affecting dividend deviation have always been in question and subject to anomalies. The presence of these anomalies in accrua...