Earning Quality and Stock Return of Listed Companies in Tehran Stock Exchange (TSE)

摘要

Earning quality is referred to the closeness of operating earnings to cash flow of operation. The more the distance of earning with cash flow, the less the earning quality and the less the ability of earning to explain stock return changes. Therefore, the present study aims to investigate the relation between earning quality and gained return by stockholders. To do the research, 157 companies of the companies listed in TSE were selected and the related data were studied during 2006 to 2010 by statistical tests of Analysis of Variance (ANOVA) and correlation. The results indicated that among different classified companies, there is not different return average based on earning quality. The other results show that there was no significant relation between earning quality and stock return of the companies.