Effect of the Consequence of Earning Cash Component and Earning Persistence on Stock Returns of the Listed Companies in Tehran Stock Exchange
Ali Amiri1*, Karim Nemati2 and Esmaeil Dordaneh3
1- Department of Accounting, Bandar Abbas Branch, Islamic Azad University, Bandar Abbas, Iran
2- Department of Accounting, Marvdasht Branch Islamic Azad University, Marvdasht, Iran
3- MA student of accounting, Islamic Azad University, Bastak branch
*Corresponding author
Abstract
This research aims on studying the effect of the consequence of earing cash components and earning persistence on companies’ stock return. This research was librarian and causal-analytical and based on panel data. Financial data of 109 listed companies in Tehran Stock Exchange was studied in 2010-2015 (654 companies-year). Research results about the confirmation of the first hypothesis showed that the earning cash components percent influences on the earning accruals component percent on companies’ stock return. Moreover, it was concluded by confirmation of the second hypothesis that earning cash components percent is effective on companies stock return more than earning cash dividend percent of stock. Finally, based on analysis, it was concluded about the third hypothesis that earning cash components percent is more than stock price growth percent on companies’ stock return.
Keywords: earning cash components, earning accrual components, stock return, earning cash dividend
