The Value Relevance of Information in Annual and Interim Financial Statements in Tehran Stock Market

Subject Areas :

M. MoradzadehFard ¹ , M. Alemi ² , S. Behzadpoor ³

1 - استادیار و عضو هئیت علمی گروه حسابداری دانشگاه آزاد اسلامی واحد کرج
2 - دانشجوی کارشناسی ارشد دانشکده علوم اقتصادی
3 - دانشجوی کارشناسی ارشد دانشکده علوم اقتصادی

Received: 2015-11-01 Accepted : 2015-11-01 Published : 2011-12-22

Keywords: Stock Return, Interim Financial Statements, Financial ratios, Accounting Information,

Abstract :

The main goal of investors is achieving wealth and it realizes through stock return. Therefore evaluating stock return is a main matter in stock market. So providing required information to interpret firm's condition and profitability is a primary purpose of financial reporting. Accordingly financial statements and supply notes are important information resource for investors. The objective of this study is examining the value relevance of information in annual and interim financial statements to explain stock return
.This research investigates the relationship between financial reports information and abnormal return by using financial ratios, firm's size and cash flow from operation. So the existence of relationship between them could be criteria for investors to anticipate interim and annual abnormal return and facilitate investing decisions. Overall, the findings show that for explaining stock return interim financial statements are more informative than annual financial statements.