Investigating Earning Quality in Life Cycle of Firms Listed in Tehran Stock Exchange
Based on signaling and competing theories, firms have different characteristics and conditions in their life-cycle that could be influencing their financial reporting. This study investigates the relationship between firms, life cycle and their earnings quality. To measure earnings quality, four cri...
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| Autores principales: | , |
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| Formato: | article |
| Lenguaje: | FA |
| Publicado: |
Shahid Bahonar University of Kerman
2015
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| Materias: | |
| Acceso en línea: | https://doaj.org/article/254a163f5cdd4a669dc9a85b7d36a60f |
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| Sumario: | Based on signaling and competing theories, firms have different characteristics and conditions in their life-cycle that could be influencing their financial reporting. This study investigates the relationship between firms, life cycle and their earnings quality. To measure earnings quality, four criteria were used: conservatism, predictability, persistence and value relevance.
The study sample includes firms listed in the Tehran Stock Exchange from 2007 to 2012. The study has used regression analysis to investigate the above mentioned relationship. The findings showed that earnings predictability and earnings consistency are different across firms’ life-cycle. For the firms in declining stage, their earnings predictability and earnings consistency are less than those in the other stages. However, there was not significant difference between the firms in mature and growing stages. Moreover, conservatism and value relevance were not found significant during the firms’ life cycle. |
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