Influence of information content of earning on price and buy- hold period return

Investors try to gain more profit through investing in stocks. they often intend to invest in industries which have high return and less risk. Optimum decision making for investment in enterprises requires transparent and comparable financial information. Net income and related components are among information which is considered in decision making by users. As informational content of earning، by companies have the capability to influence the decisions of buying, selling or holding the shares by investors, so this study was conducted with the goal of determining the informational role of earnings on price and buy -hold return of shares. To do this, the effect of informational variables on the performance of 60 companies listed in Tehran stock exchange was investigated during 1383-1388. The methodology used in this study is correlation. To analyse data, we used multiple regression with cross-section panel data. Results show the direct and significant effect of earning on share market price, buy-hold return, buy-hold cumulative abnormal return and buy-hold abnormal return.