Emamining the Effect of Firm Growth on The Relationship between Discretionary Accruals and Stock Return

Considering the importance of discretionary accruals in reporting and its influence
on stock return, and also growth opportunities and information asymmetry in high
growth companies, it is expected that management of high growth companies have
incentives to use discretionary accruals for signaling positive future performance of
the firm. The purpose of this study is to investigate the impact of growth changes on
stock return sensitivity to discretionary accruals, positive accruals and the quality of
accruals. The study is performed in TSE listed companies and 192 companies data
between 1388 to 1394 were selected. The coefficient and multivariate regression
were used for hypothesis testing. The results revealed that the sensitivity of stock
return to discretionary and positive accruals and accruals quality is high for high
growth companies compared to low growth ones.