Implications of the Cash Component of Earnings for Earnings Persistence and Stock Returns in Firms Listed in Tehran Stock.
Subject Areas : مدیریتAhad JanAbadi 1 , Morteza Motavassel 2
1 - M.A., Department of Accounting, Urmia Branch, Islamic Azad University, Urmia, Iran
2 - Lecturer, Department of Accounting, Urmia Branch, Islamic Azad University, Urmia, Ira
Keywords: Accruals component persistency, Cash component, Normal and abnormal stock return,
Abstract :
Considering the fact that income is a base for decision marking , entitled individual predictions and its effect on firm’s stock return , this research studies relevance of income components to stock return and income persistency . Hypotheses test is conducted using a panel data sample of 132 firms of Tehran stock Exchange during 2009 to 2015 . The results of first hypothesis show that , unlike previous researches findings , accruals persistency component is more than cash component . The results of second hypothesis show that , again unlike previous researches findings, net payments to lenders has more persistency than net payments to stock holders . The results of third hypothesis indicate that cash components of earning have a positive significant effect on. In addition , the findings show that operating income do not specify stock return.
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