ISSN: 2226-3624
Open access
One of the most important subjects in the financial management is the systematic risk which has always been focused on by the researchers. Due to the vastness of the market, there exist different devices for the investment in every financial market. The main goal of the shareholders, business owners and those who are concerned is to produce the optimum return and they face some risks in order to reach their goals and the fundamental requirement is to keep the relation between the risk and the return balanced. In other words, the decision makers of the stock markets produce their desired return by using the financial information of the companies. Therefore, the investigation into the risk and the factors influencing the risk is of importance. This article studies the reliability of the accounting information upon the systematic risk. To test the hypothesis, the data obtained from 52 companies listed on the Tehran stock exchange from 2006-2010 were chosen by the systematic deletion method and were tested by using the multi-variable regression. The conclusion suggests that there is a significantly positive statistical relation between the reliability of accounting information and the systematic risk.
Bolu, GH., Hasas Yeganeh, Y., & Harasani, R. (2011). Earnings quality changes over time in the listed companies in Tehran Stock Exchange. Journal of Accounting Research, No. 29, pp. 65-95.
Cohen, S., Kaimenakis, N., & Venieris, G. (2013). Reaping the benefits of two worlds: An exploratory study of the cash and the accrual accounting information roles in local governments. Journal of Applied Accounting Research, Vol. 14, No. 2, www.emeraldinsight.com.
Dastgir, M., & Pairvand, B. (2010). The role of current and non-current accruals items on the relationship between earnings and stock returns for firms listed in Tehran stock market. Journal of Accounting Research, No. 28, pp. 41-62.
Dechow, P., & Dichev, I. (2002). The quality of accruals and earnings: the role of accrual estimation errors. The Accounting Review 77, 35-59.
El-Sayed Ebaid, I. (2011). Accruals and the prediction of future cash flows: Empirical evidence from an emerging market. Management Research Review, Vol. 34, No. 7, 838 – 853.
Fama, E., & French, K. (1993). Common risk factors in the returns on stocks and bonds. Journal of Financial Economics 33, 3-56.
Francis, J., Lafond, R., Olsson, P., & Schipper, K. (2005). The market pricing of accruals quality. Journal of Accounting and Economics 39, 295-327.
Gill, A. M., & Biger, N. A. (2013). The impact of corporate governance on working capital management efficiency of American manufacturing firms. Managerial Finance, Vol. 39, No. 2, www.emeraldinsight.com.
Houmes, R. E., MacArthur, J. B., & Stranahan, H. (2012). The operating leverage impact on systematic risk within a context of choice: An analysis of the US trucking industry. Managerial Finance, Vol. 38, No. 12, 1184 – 1202.
Iatridis, G. E. (2010). International financial reporting standards and the quality of financial statement information. International Review of Financial Analysis 19, 193-204.
Khodayi Ardakani, F. (2008). Evaluate the performance of the current financial reporting reflects the performance of business units. MS Thesis Accounting, Islamic Azad University of Yazd.
Li, Q., & Wang, T. (2010). Financial reporting quality and corporate investment efficiency: Chinese experience. Nankai Business Review International, Vol. 1, No. 2, 197-213.
Niu, F. F. (2006). Corporate governance and the quality of accounting earnings: A Canadian Perspective. www.emeraldinsight.com.
Pirie, S., & Smith, M. (2008). Stock prices and accounting information. Asian Review of Accounting, Vol. 16, No. 2, 109-133.
Rajgopal, S., & Venkatachalam, M. (2011). Financial reporting quality and idiosyncratic return volatility. Journal of Accounting and Economics 51, 1–20.
Tousi, H. R. (2011). Reviews can benefit obligations, cash dividends and changes in explaining stock returns of listed companies in Tehran Stock Exchange. MS Thesis Accounting, Islamic Azad University of Yazd.
Vakili Fard, H. R. (2010). Decisions on financial Issues. Jangal Publications, Foj Scientific, Second edition, pp. 17-19.
Velury, U., & Jenkins, D. S. (2006). Institutional ownership and the quality of earnings. Journal of Business Research 59, 1043–1051.
(Moeinadin et al., 2014)
Moeinadin, M., Heirany, F., & Khoshnood, E. (2014). The effect of the reliability of accounting information on systemic risk on listed companies at Tehran Stock Exchange. International Journal of Academic Research in Economics and Management Sciences, 3(1), 1–10.
Copyright: © 2018 The Author(s)
Published by Human Resource Management Academic Research Society (www.hrmars.com)
This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this license may be seen at: http://creativecommons.org/licences/by/4.0/legalcode