The Effect of Financial Statement Comparability on Future Earnings Response Coefficients

Document Type : Research Paper

Authors

1 Associate Professor, Accounting, University of Isfahan, Isfahan, Iran

2 MSc. in Accounting, University of Isfahan, Isfahan, Iran

Abstract

The purpose of this research is to determine the effect of comparability as one of the qualitative characteristics of financial reporting on future earnings response coefficients. The future earnings response coefficients have been used as a criterion to measure the information content of the current stock prices about future earnings. In order to attain the research purpose, 80 companies among the listed companies in Tehran Stock Exchange during 1381 to 1392 (2002-2013) were selected as statistical samples. For analyzing data and testing hypotheses, multi variable regression model with compound data has been used. Findings of research signify that financial statement comparability increases the future earnings response coefficients. Results also indicate that the comparability causes the higher level of firm-specific information to be reflected in current stock prices.

Keywords

References

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