The Relationship between Specific Characteristics of Firms and Their Prior Period Adjustments

This study investigate the relationship between specific characteristics of companies and their prior period adjustments. In this study, three variables such as stock returns, firm size and the specific features of corporate life have been used. Therefore, three hypotheses for this development and the panel data regression for the period time between the years 2005 to 2009 in Tehran Stock Exchange were examined. Findings suggest that positive and significant relationship between stock returns and their prior period adjustments were exist. Also, results show positive and significant correlation between the size of the company and their prior period adjustments. The results for the relationship between prior period adjustments are not significant with age of firms.