Reviewing the Efficiencies of Informative Content in External Financial Reporting to Forecasting of Behavior of Stocks Return for the Companies listed in Tehran Stock Exchanges by Canonical Correlation Analysis
Subject Areas : business management
1 - Department of Accounting, Central Tehran, Islamic Azad University, Tehran, Iran
Keywords: Accounting Components Based on Obligatory Financial Statements, Accounting Components Based on Obligatory Financial Statements - Cash Flows, Fundamental Solidarity Analysis,
Abstract :
This investigation, examine the association among accounting components based-on accrual approach & accounting components based-on operating cash flows approach with components of behavior of common shares return for the listed firms in Tehran Stock Exchanges. However since that the goals of present investigation is determining the relation between two or more phenomena, so it to be defines as correlation researches. . Sampling method is filtering or systematic removing. Volume of sample is equal to (100) firms during the six years, and so analyzed data of (600) firms-fiscal years in form of cross-section method. Statistical feedback from testing of hypotheses are done by correspondent canonical correlation analysis. . Statistical feedback of testing principle hypotheses, confirms that in ninety five percentage intervals confidence, there are significant & positive-imperfect association between synthetic linearity combinations of behavior of stock return with informative content of components based-on accrual approach, synthetic linear combinations of accounting components based-on operating cash-flows approach & synthetic linear combination of accounting consolidated components based-on accrual-operating cash flows approach. In addition to, informative content of synthetic linear combination of components based-on operating cash-flows approach, are higher than synthetic linear combination of accounting components based-on accrual approaches.
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