Analyzing the efficiency of capital market relative to the decreas-ing and increasing information of the components of accounting earnings

الموضوعات :

Leila Lak ¹ (Department of Accounting, Ahvaz Branch, Islamic Azad University, Ahvaz, Iran.)
Allah Karam Salehi ² (Department of Accounting, Masjed-Soleiman Branch, Islamic Azad University, Masjed-Soleiman, Iran)
Mehdi Basirat ³ (Department of Economic, Ahvaz Branch, Islamic Azad University, Ahvaz, Iran)
Ahmad Kaab Omeir ⁴ (Department of Accounting, Ahvaz Branch, Islamic Azad University, Ahvaz, Iran.)

تاريخ الإرسال : 01 الثلاثاء , شوال, 1440 تاريخ التأكيد : 01 الإثنين , صفر, 1441 تاريخ الإصدار : 28 السبت , جمادى الأولى, 1443

الکلمات المفتاحية: accrual earnings components, simultaneous equation system, cash earnings components, capital market efficiency, Mishkin’s test,

ملخص المقالة :

This research investigates the capital market's efficiency relative to the decreasing and increasing information the components of cash and accrual of the accounting earnings. In the accrual accounting system, accounting earnings includes two components of cash and accrual. Information about decreasing and increasing values of the normal and abnormal portion of the changes in financial assets as a cash component is compared with the information on the decreasing and increasing amounts of discretionary and non-discretionary accruals. The required data was extracted from the financial statements of the listed companies in Tehran Stock Exchange during the years 2003 to 2017. In order to estimate the research models from the regression with the combined data as well as the equations system, the simultaneous equations system with the seemingly unrelated regression (SUR) approach are utilized and then some experiments are implemented to evaluate the research hypotheses by using Mishkin’s test. The results reveal that the capital market is inefficient in terms of the increasing information (positive portion) of accrual and discretionary accruals and information on abnormal changes in financial assets (increasing and decreasing), but rather on the information (negative) of discretionary and non-discretionary accruals and abnormal changes in the financial assets (increasing and decreasing).

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