Influence of information content of earning on price and buy- hold period return

Subject Areas : Financial Knowledge of Securities Analysis

فرزین رضایی ¹ (مسئول مکاتبات)
سکینه سلیمانی راد ² (ندارد)

Received: 2011-05-05 Accepted : 2011-12-11 Published : 2012-06-09

Keywords: Stock Price, buy-hold return, information asymmetry, buy-hold cumulative&#x0D, &#x0D, abnormal, buy-hold abnormal return,

Abstract :

Investors try to gain more profit through investing in stocks. they often intend toinvest in industries which have high return and less risk. Optimum decision makingfor investment in enterprises requires transparent and comparable financialinformation. Net income and related components are among information which isconsidered in decision making by users. As informational content of earning، bycompanies have the capability to influence the decisions of buying, selling or holdingthe shares by investors, so this study was conducted with the goal of determining theinformational role of earnings on price and buy -hold return of shares.To do this, theeffect of informational variables on the performance of 60 companies listed in Tehranstock exchange was investigated during 1383-1388. The methodology used in thisstudy is correlation. To analyse data,we used multiple regression with cross-sectionpanel data. Results show the direct and significant effect of earning on share marketprice ,buy-hold return, buy-hold cumulative abnormal return and buy-hold abnormalreturn.