A Corporate Perspective on Effect of Asymmetric Verifiability on Investors’ Expectation Differences
الموضوعات :
Erdal Karapinar
1
(Department of Medical Research, China Medical University, Taichung, Taiwan)
Said Mosai
2
(Department of Accounting, Islamic Azad University, Arak, Iran.)
Faeqeh Taherinejad
3
(Department of Financial Engineering, Islamic Azad University, Arak, Iran.)
الکلمات المفتاحية: Company Outlook, Investors' Differences Expectations, Asymmetric Verifiability, representation, Behavioral Finance,
ملخص المقالة :
Investigating the performance of companies is one of the most important issues for the users of accounting information. The purpose of this study was to provide evidence about the effect of asymmetric appropriateness on investors' expectations. The results of the research on accepted companies In the Tehran Stock Exchange during the period from 2012 to 2016. To collect data, a library method was used and referring to financial statements, explanatory notes and monthly stock exchange of the Stock Exchange. Using Cochran sampling method, 120 firms were selected as the statistical sample. To analyze the data, multivariate regression analysis was used to confirm the rejection and research hypotheses (ivyz software). The results showed that asymmetric accountability leads to different expectations of investors about the company's outlook, and the negative relationship between asymmetric verification (conservatism) and investors' controversy is weaker with the release of good news and gets worse by the publication of bad news. The results are consistent with the documentation referred to in the theoretical framework of financial research and literature, such as the theory of vision and the concepts of behavioral and financial behavior, and the publication of good and bad news has a significant role.
[1] Abderrazak, D. Bacha, S., Investor emotional biases and trading volume’s asymmetric response: A non-linear ARDL approach tested in S&P500 stock market, Journal of Financial Economics.2016, 5(1), P.21-39. Doi:10.1080/23322039.2016.1274225.
[2] Agah, M., Malekpoorb, H., Investigating the Effect of Financial Constraints and Different Levels of Agency Cost on Investment Efficiency, Advances in Mathematical Finance and Applications, 2017, 2(4), P.31-47. Doi: 10.22034/amfa.2017.536264.
[3] Armstrong, C.S., Guay. W. R, Weber. J. P., The role of information and financial reporting in corporate governance and debt contracting, Journal of Accounting and Economics, 2010, 50 (2-3), P.179-234. Doi:10.101 6/j.jacceco.2010.10.001.
[4] Atiase. R., Dontoh, A, Gift, M. J., Differences in prior beliefs, differential interpretation and the consensus effect of quarterly earnings signals and trading volume. Journal of Accounting, 2016, 31(4), P.483–514. Doi: 10.1177/0148558X15623416.
[5] Balakrishnan, K., Watts, R, Zuo, L., The effect of accounting conservatism on corporate investment during global financial crisis, 2016,43(5-6), P. 513–542. Doi: 10.1111/jbfa.12206.
[6] Bamber. L., S, Cheon. Y. S., Differential price and volume reactions to accounting earnings announcements, The Accounting Review, 1995,70(3), P. 417-441.
[7] Basu, S., The conservatism principle and the asymmetric timeliness of earnings, Journal of Accounting and Economics, 1997, 24(1), P. 3–37. Doi: /10.1016/S0165-4101(97)00014-1.
[8] Biranvand, M., Hematfar, M., Effect of conditional conservative reporting on relevance of value of accounting information, First National Conference of Stance of Management and Accounting in Modern Business World, Economics and Culture, Islamic Azad University Press, 2013, 395, P.32-43. Doi: 20142317/element-31195.
[9] Davalu, M., Excessive pricing, Lack of transparency and falling stock prices. Financial Management Perspective, 2017 ,17, P.87-111.
[10] D’Augusta, C., Redigologo. G., Do managers use voluntary disclosure to explain the earnings effects of accounting conservatism? The role of bundled forecasts, 2015. Doi :10.2139/ssrn.2670745.
[11] Dechow, P., Ge. W, Schrand, C., Understanding earnings quality: A review of proxies, their determinants and their consequences, Journal of Accounting and Economics, 2010, 50, P.344-401. Doi:10.1016/j.jacceco.2010.09.001.
[12] Derakhshandeh, S. H, Ahmadi, S. A. Evaluation of role of investors’ beliefs in price direction and trading volume in capital market, Journal of Financial Knowledge in Analysis of Securities,2017, 4 (10), P.51-63.
[13] Guay. W, Verrechia, R. E., Conservative disclosure. Working paper, Waharton School of Business, University of Pennsylvania.2007. Doi: 10.2139/ssrn.995562 .
[14] Izadinia, N., Ramsheh, M. The role of stock trading on liquidity of stock in Tehran Stock Exchange, Journal of Accounting advances,2011, 1 (3), P.1-27. Doi: 10.22099/jaa.2011.3387.
[15] Jokar, H., Shamsaddini, K., Daneshi, V., Investigating the Effect of Investors' Behavior and Management on the Stock Returns: Evidence from Iran. Advances in Mathematical Finance and Applications, 2018, 3(3), P. 41-52 Doi: 10.22034/amfa.2018.544948
[16] Kordestani, G., Amirbaigi-langarodi, H., Conservatism in financial reporting: Association of lack of concurrence of earning and market to book value ratio as two criteria for evaluation of conservatism, Journal of Accounting Studies and Auditing ,2008, 15(52), P.89-106.
[17] Mosavi, S. M., Aghababai, F., The effect of Overconfidence on Investors Behaviors: Evidences from Tehran Stock Exchange, Scientific Research Quarterly of financial Knowledge of Analysis of Securities, 2017, 10(34), P.25-37.
[18] Peng. E., Yan. E, Yan. M., Accounting accruals, heterogeneous investor beliefs and stock returns, Journal of Financial Stability, 2016, 24 (c),P.88-103.Doi:10.1016], /j.jfs.2016.04.011.
[19] Pourzamani, Z., Mansoor, F., Effect of disclosure quality, conservatism and their mutual effect on capital cost of typical stocks, Journal of Financial Accounting Studies, 2015,6(7), P.85-102.
[20] Rai, R., Islami Bidgoli, G., Mirzabiati, M., Valuation of stock and behavioral heterogeneity of shareholders in Tehran Stock Exchange, Journal of Accounting Knowledge, 2011, 2(5), P.103-126. Doi: 10.22051/jera. 2015.1889.
[21] Rostami, M. R., Baikzadeh, L., Azhdari, F., Test of pricing capital assets by presuming heterogeneous information in Tehran Stock Exchange, Journal of Financial Engineering and Management of Securities, 2016 ,7 (27), P. 71-86.
[22] Saqafi, A, Jamalianpur, M., The significance of phenomenon of classification change in earning management. Journal of Experience of Financial Accounting, 2018, 14 (57), P. 1-23. Doi: 10.22054/qjma.2018.8911.
[23] Young, A., Capital market frictions and conservative reporting: Evidence from short selling constraints. Financial Research Letters, 2016, 17, P. 227-234.Doi: 10.1016/j.frl.2016.03.016.
