earning response coefficient

The purpose of this research is to investigate the effect of corporate governance on the earning response coefficient with regard to the moderating effect of company size. In order to conduct the research, combined data and a sample consisting of 1272 observations between 2016 and 2023 from Tehran Stock Exchange companies were used, and OLS regression and systematic GMM were used to test the hypotheses. The findings of the research showed that applying effective corporate governance leads to an increase in earning response coefficient and company size weakens the effect of corporate governance on in earning response coefficient. The results of the research using the systematic GMM method also showed that corporate governance has a positive and significant effect on the earning response coefficient and company size has a negative effect on the relationship between corporate governance and earning response coefficient. Based on the results of the research obtained using different methods, it can be said that corporate governance in Iran is not symbolic and affects the behavior of shareholders. Establishing an effective corporate governance increases investors' confidence in the information announced by the companies, and the shareholders react better to the information announced by the companies. Also, company size has an important interactive role in the relationship between corporate governance and earning response coefficient.

Since the first research on Earning Response Coefficient, one of the most important directions of studies conducted in financial accounting is explaining and identifying different factors affecting the Earning Response Coefficient for companies. Also it can be shown that the financial characteristics are not the same in different periods of a firm's life cycle and changes depending on period and the situation it is placed. In other words, the financial characteristics are influenced by the stage of the life cycle, therefore, the firm life cycle can be used as a key for stronger forecasting as well as making more logically decisions. Therefore, the purpose of this research is to investigate the effect of the firm's life cycle on the relationship between stock trading volume and the Earning Response Coefficient of listed companies in Tehran Stock Exchange.This research is a type of applied research in which the financial data of 151 companies during the period of 2013 to 2022, including 1510 observations, were examined. The results show that the effect of the trading volume on the Earning Response Coefficient is different in different stages of the life cycle, and it is more in the Stagnation Stage than in other stages. The results show that the life cycle is an influential factor in the relationship between the trading volume and the Earning Response Coefficient, so that the adjusted determination coefficient changes with the entry of each of the life cycle variables into the regression equation.

 This study aims to determine the effect of peer firms' bankruptcy on financial reporting quality. Theoretically, it is expected that the effect of the peer firm bankruptcy will go beyond that company and significantly affect companies in the same industry.

 Information about 175 companies listed on the Tehran Stock from 2012 to 2020 will be examined. In terms of methodology, the current research is regression and correlation type.

 Findings show no significant relationship between peer bankruptcy and conservatism, accrued earnings management, and earnings response coefficient‌. However, supplementary studies suggest that there is a significant relationship between peer firms' bankruptcy and real earning management among firms with reduced earnings management‌.

 Overall, this study shows that the bankruptcy of a peer firm causes other companies operating in that industry to manipulate real activities to reduce earnings. The effect of the bankruptcy of competitors on the management of real profits and its lack of impact on the management of accrued profits can be justified by the fact that due to the monitoring mechanisms such as the existence of independent audits, companies tend to manipulate through accruals when they receive bad news from competitors. Are more inclined to manipulation through real activities because auditors' supervision is mostly done on accrual items and this manipulation is mostly in the direction of profit reduction‌.

Contribution:

 Findings show that the bankruptcy of a company not only affects the quality of its financial reporting but also affects some measures of financial reporting quality of its peers‌.

Social responsibility is the commitment of companies to actions that, in addition to serving the interests of the company, also improve the well-being of society. Accordingly, social responsibility is an obligation to which the company must be accountable. In other words, companies have a responsibility to avoid polluting the environment, discriminating in employment matters, disregard for the needs of employees, producing harmful products, and the like that harm the health of society. The purpose of this paper is to investigate the relationship between social responsibility and financial performance and earing response coefficient of firms listed on Tehran Stock Exchange. We investigated the data of 109 firms listed on Tehran Stock Exchange for a period of 7 years from 2010 to 2017. We used The Carroll Index (1979) to measure corporate social responsibility. The results show that social responsibility has a positive significant effect on earning response coefficient. It has also no significant effect on market value to stock value, but has a positive effect on return of assets.