earnings persistence

The purpose of this research is to investigate the effect of profit stability and the comparability of financial statements on the ability to predict profit and the pricing efficiency of accrual items. It is possible to establish a balance between the qualitative characteristics of information with the stability of profit and the comparability of financial statements, and it leads to an increase in the overall quantity and quality of information of a company in the industry. For this purpose, 105 companies were selected from the companies accepted in the Tehran Stock Exchange during the period of 2014-2022 through the method of systematic elimination. To test the research hypotheses, the multiple regression model using panel data has been used. The results of the hypothesis test showed that the comparability of financial statements has a significant effect on the ability to predict profit and the pricing efficiency of accrual items. The results show that the comparability of financial statements has a positive and significant effect on the pricing efficiency of accruals and the ability to predict profit, profit stability. The results show that profit stability has a mediating role on the relationship between comparability and pricing efficiency of accruals. Also, profit stability plays a mediating role on the relationship between comparability and profit predictability.

The purpose of this study is to determine the relationship of cash flow volatility, sales volatility, operating cycle and company size with the capital structure and earnings persistence of companies listed on the Tehran Stock Exchange. Based on the purposeful sampling method, 187 companies were selected as a statistical sample, and related data were collected during the years 2016 to 2021. Data analysis is also through multiple linear regression based on panel data. The results showed that the variables of cash flow volatility, sales volatility and company size have a negative and significant relationship with the capital structure. The relationship of the operating cycle with the capital structure was also not confirmed. Also, the results showed that the variable of sales volatility has an inverse and significant relationship with the earnings persistence and the company size has a direct relationship with earnings persistence. However, the relationship of cash flow volatility and operating cycle with earnings persistence. Has not been confirmed.

The purpose of this study is to investigate the relationship between Earnings persistence, institutional investors monitoring, and types of political connections in companies listed on the Tehran Stock Exchange. The statistical population of this study is all companies listed on the Tehran Stock Exchange from 2015 to 2021 and the number of samples is 105 companies. The regression analysis method and Ivory statistical software were used to analyze the research data. The results showed that institutional oversight in companies with political connections has an effective role in increasing profit stability. The selection of large auditors by companies with political connections has no significant relationship with profit stability. However, the longer the term of the CEO of companies with political connections increases, the more stable the profit. The results generally indicate a significant relationship between profit stability, institutional oversight, and various types of political communication.

The aim of this study is to investigate the effect of Environmental Uncertainty on Earnings persistence of listed Companies in Tehran Stock Exchange. The coefficient of variation (CV) of sales (scaled by total assets) to capture environmental uncertainty.  For this purpose one hypothesis developed and data on the 108 companies in Tehran Stock Exchange for the period of 1390 to 1398 were analyzed. The number of data collected for this study is 972 years-firm. The regression panel data with fixed effects approach, reviews and tests. The results showed that the concentration of Environmental Uncertainty has significant negative impact on Earnings Response Coefficient. Therefore, the research results indicate that Environmental uncertainty, by creating serious restrictions for the company and Makes information asymmetry between management and stakeholders more acute it Earnings persistence reduced.

Accounting profits and related components are among the information considered by individuals when making decisions. Profit sustainability is one of the qualitative characteristics of accounting profit that is based on accounting information and helps investors in assessing future profits and cash flows of the company. In addition, the reported profit figure is important for investors and the decision Their effects. Investors in estimating future earnings and expected cash flows not only pay attention to accounting profit margins, but also to the sustainable profit segment more than the volatile sector. Awareness of profit sustainability can be used to predict returns. Profit awareness refers to the quality of earnings that expresses the ability of reported earnings to help shareholders in the company's valuation process. Management strives for periodic fluctuations in order to achieve sustainable earnings Eliminate profits and plan profits at a steady growth rate, which makes the company's future outlook look good and its performance acceptable. Profit management may lead to an increase or decrease in profit sustainability. On the one hand, companies are realistically increasing their profits this year by managing real profits, and this will reduce the sustainability of profits as profits change artificially, which can have devastating effects. On the other hand, real earnings management can lead to smoothing of profits and signals about the future profitability of the company, which in turn leads to increased profitability of profitability (marking theory). Therefore, the present study examines the impact of real earnings management on two important aspects of earnings quality such as earnings sustainability and earnings awareness about future cash flows. In this regard, a sample of 129 companies listed on the Tehran Stock Exchange during the period 2011-2016 was selected and tested. For this purpose, the Jones model (1991) was used to measure earnings management. The results using multiple regression methods show that real earnings management has a negative relationship with earnings stability, ie with increasing earnings management, earnings stability decreases; Real earnings management also reduces the relationship between current earnings and future cash flows.

Earnings persistence is one of the qualitative characteristics of accounting earnings that is based on accounting information and helps investors in assessing the company's future earnings and cash flows. In addition, the reported earnings figure is important for investors and influences their decisions. In estimating their expected future earnings and cash flows, investors do not only pay attention to the accounting earnings figure and pay more attention to the stable part of the earnings than the unstable part. The position of how capital market stakeholders process accounting information, especially earnings and its components, has always been of interest to capital market stakeholders. Accordingly, the present study investigates the effect of corporate diversification on the discretionary accrual quality and earnings persistence. This research is applied in terms of purpose and descriptive-correlational in terms of research method. In other words, in this study, the existence of relationship and correlation between variables through regression is investigated. In order to achieve the above objectives, two hypotheses were formulated. Therefore, in order to test the research hypothesis, a sample of 100 firms was selected from the firms listed in Tehran Stock Exchange during the period 2014 to 2019. Multivariate regression model based on combined data was used to test the research hypothesis. The results of this study show that there is a positive and significant relationship between corporate diversifications and discretionary accrual quality, which means that with increasing corporate diversifications, discretionary accrual quality will increase. Also, corporate diversifications has a significant positive impact on earnings persistence, which means that with increasing corporate diversifications, earnings persistence will increasing.

The quality of accounting information plays an important role in user decisions, reducing information asymmetry and optimal resource allocation. Researchers consider several factors to affect the accounting information quality. The role of economic crisis and audit fees in the present study on the accounting information quality has been investigated. During years of economic crisis, auditors are pressured by some clients to consider cut audit fees. In Iran, due to inflationary conditions, this issue manifests itself mainly in the form of an increase in auditing fees to a lesser extent than the general increase in prices. As auditing fees decrease or increase below the inflation rate, there is a concern that auditorschr efforts will be diminished and that this will impair the quality of the audited information. Overall, the research findings show that although the economic crisis following the currency shock in 2012 has affected the accounting information quality, but there is no significant difference in accounting information quality, between client firms that received a fee cut during the economic srisis and other client firms. Our findings contribute to understanding the role of audit fees during the economic srisis.

Many studies have shown that users of financial statements are not able to correctly price the components of earnings. Based on competitive and signalling theories, firms’ reporting and earnings quality vary in different stages of the life cycle. Therefore, in this research, we try to study the pricing of earnings components over the life cycle of firms. This study was conducted through the mishkin test expanded by the model of Allen et al (2013). In order to implement this plan, data of 78 companies accepted on the Tehran Stock Exchange during the years 2004 to 2014 were collected from CODAL and TSE-Client. The evidence suggests that cash component and accruals components are respectively underpriced and overpriced by market in growth stage. In addition, there was no evidence of mispricing of accruals related to the growth of the company at the maturity stage. Evidence also showed that these items are underpriced in the declining stage. The pricing of other components of earnings was similar in three stages. Given that the smallest and largest amount of absolute value of the difference in the coefficients of earnings components was respectively observed in the maturity and the declining stages, it can be concluded that earnings at the maturity and the declining are respectively the lowest and the most misleading.

This research is aimed to identify factors misleading investors in determining future profitability, focusing on good accruals and accruals estimation error.This study is an applied and quantitative research. Also, because of using past information, it is considered asex-post facto research. The sample consists of 78 firms listed in Tehran Stock Exchange during the years 2004 to 2013 and the hypotheses is tested using regression coefficient analysis. Findings show that the cash component of profit is more persistent than all accrual components and also accruals related to growth is the most persistent component of accruals. In addition, the findings show that cash flow and accruals related to growth have a positive relationship with future returns, and accruals related to temporary fluctuations and accruals estimation errors have a negative relationship with the mentioned variable.According to the results, accruals related to temporary fluctuations and accruals estimation errors lead to investors misleading, due to their lower persistency

The aim of the present study, Investigate real earnings manipulation by management activities in firms listed in the Tehran Stock Exchange And its impact on investors perception of the sustainability of earnings components. For the analysis of research data of the method Regression analysis with panel data and also simultaneous equations by Mishkin test (1983) has been used in the Eviews software. The statistical population is consist of firms listed in the Tehran Stock Exchange. The duration of the research is five years since 1388 to 1392. The results of the study indicate that companies suspected of manipulating earnings from management Discretionary expenses and also manage production costs used as a strategy to manipulate the results of their financial statements. But their use of operating cash management as a strategy to manipulate their financial statements were not confirmed. The results also showed that the real management activities to manipulate earnings at all three levels, will causing incorrect understanding investors of earnings sustainability components

Product market competition, impacts on firm financial and operational various aspects. Present study aims at examining the effect of industry concentration on financial indicators of Tehran stock exchange listed companies from 2012 to 2016. To measure industry concentration (as independent variable), Herfindahl mixed index based on three factors include sales, assets and equity was used. Finally observations were classified in 5 groups in accordance with their combined scores. Financial indicators as dependent variables were earning persistence, stock return, firm growth, and rate of profitability. Results showed that industry concentration in its maximum level has negative effect on earning persistence, while in its minimum level; this effect is negative on stock return, and nonsense in other levels. Also the negative and decreasing effect of industry concentration on firm growth in all 5 levels were documented. A weak positive significant effect of industry concentration was also recognized in higher than average levels of concentration.

The aim of this study is to investigate the relationship between Cash flows from operating activities in five-section model and return on investment in four-section model with the Earnings persistence. In order to investigate this issue selected sample of 171 firms enlisted in Tehran Stock Exchange during a 6 years period (from 2008 to 2014) .Data analysis was performed through Eviews software and consolidated structure (panel) and generalized least squares method (GLS) and in Weighted Cross section framework and by using Cross section fixed effect. The result of this study has shown that Cash flows from operating activities in five-section model and return on investment in four-section model have positive impact on earning persistence. In comparative situation the effect of return on investment in four-section model on Earning persistence is more than Cash flows from operating activities in five-section model. According to the results, financial decision makers and analysts can by simple changes, by simply arranging several elements together, and converting Cash flows from operating activities in five-section model into return on investment in four-section model, such as in The definition of this variable in the text of the article is to test the sustainability of company earning persistence more correctly.

Some views indicate that income smoothing can predict future performance of companies and prepare useful information for interested group. The aim of this study is to test this view in companies listed in Tehran Stock Exchange. We have followed this target by focusing on earnings persistence and divided policy persistence as proxies for anticipating companies' future performance in companies that have smoothed their earnings. Financial information was collected from a sample of 66 firms for the period of 2008 to 2012. We have used multiple linear regressions and Logistic Regressions to test our hypothesis. The results show smoothed income has significant negative impact on earnings persistence and don’t have significant impact on dividend policy persistence. These results mean earnings smoothing in TSE companies is not done with the purpose of preparing useful information for anticipating future performance.

Some views indicate that income smoothing can predict future performance of companies and prepare useful information for interested group. The aim of this study is to test this view in companies listed in Tehran Stock Exchange. We have followed this target by focusing on earnings persistence and divided policy persistence as proxies for anticipating companies' future performance in companies that have smoothed their earnings. Financial information was collected from a sample of 66 firms for the period of 2008 to 2012. We have used multiple linear regressions and Logistic Regressions to test our hypothesis. The results show smoothed income has significant negative impact on earnings persistence and don’t have significant impact on dividend policy persistence. These results mean earnings smoothing in TSE companies is not done with the purpose of preparing useful information for anticipating future performance.

The main purpose of current research is to determine the effect of financial crisis on earnings quality. In this study, earnings quality was measured by using three earnings persistence, earnings predictability and accruals quality. The measure of financial crisis in a company is to have at least one of three criteria: three consecutive years of losses (operating loss, net loss or retained), reduction in distributed dividends of each year relative to the previous year by more than 40 percent, and article 141 of the commercial code be applicable to studied companies study. In current study, we use a sample of 97 firms listed in the Tehran Stock Exchange during the period 2002 to 2015. The results of multiple regression model and panel data with fixed effects, showed that in 95 percent of confidence level, financial crisis has a significant negative effect on the earnings persistence and a significant positive effect on the earnings predictability. Also, there was not found a significant relationship between financial crisis and discretionary.

The objective of this study is evaluating the relationship between the types of Audit Opinion and The earnings persistence in respect of Listed Companies in Tehran Stock Exchange. In This Study, 95 Companies (655 samples of year / company) Listed in Tehran Stock Exchange within a period 2008 to 2014 are assessed. Rahavard Novin software and Financial Statements are used to collect data. Stata (Version 12) and Excel (2013) soft wares are used to analyze data. The Most proper Method For this type of research is Past-Event Method regarding target subject. In this study, the earnings persistence and audit opinion are considered as the dependent variable and independent variable respectively. Besides correlating earnings persistence in respect of companies received different audit opinion. The results indicate there is a significant relationship between the independent variables of audit opinions and the dependent variable of earnings persistence. The findings of study also show there is a relationship between control variables, loss and size of audit firms of company and earnings persistence.