A survey of the influence of earning sustainability on value relevance of accounting information

This research examines the relationship between earning sustainability and value relevance of accounting information. In this study has collected data from 76 firms listed in the Tehran Stock Exchange from 2005 to 2013 and test the research hypothesis by utilizing the regression coefficient analysis. The results showed a significant and positive relation between earning sustainability and value relevance of accounting information. In other words، when increase the reproducibility of the earning increases value relevance of accounting information. In general unsustainable earning will decrease the value relevance because shareholders cannot rely on earning. From the other side increase earning sustainability can be increase the predictive power of shareholders. Thus it can increase value relevance of accounting information. The Results also show that the significant and positive relation between Changes EPS and return of stock