Economic Consequences of Accounting Information Quality focused on Earnings persistence

Subject Areas : Management Accounting

هاشم نیکو مرام ¹ , مهدی تقوی ² , حمید احمدزاده ³

1 - ندارد
2 - ندارد
3 - ندارد

Received: 2014-03-11 Accepted : 2014-05-10 Published : 2014-06-15

Keywords: Keywords : Accounting Informat, Economic Consequences, Earnings Persistence, Tobin's Q index,

Abstract :

AbstractThe current study is a positive investigation that examines the empirical economicconsequences of accounting information quality in companies listed at Tehran StockExchange in a span of 12 years from 2000 to 2011. This survey answering question of howare the economic situations of companies with better Accounting Information Quality?Accounting Information Quality is used as independent variable that is measured basedon Earnings persistence. To calculate dependent variable (Economic Consequences ofAccounting Information Quality) various measures is used such as the Tobin's q index, weightaverage cost of capital, the market value to book value of owner's equity ratio, and price toearnings per share ratio.Results show that Accounting Information Quality- in some cases- has the positiverelation only with the various measures such as the Tobin's q index, the market value to bookvalue of owner's equity ratio, and price to earnings per share ratio. In fact, measure EarningsPersistence has the meaningful content and positive economic consequences in Tehran stockexchange.