The Relationship between ownership structure and information content of earnings of Companies Listed in Tehran Stock Exchange

Net income is one of the important items included in financial statements that is useful to the decisions of users of financial statements. One of the important questions is that, whether ownership structure can affect the information content of earnings or not? Therefore, the main objective of the present study is investigating the relationship between ownership structure and the information content of earnings of listed companies in Tehran Stock Exchange. In this research, ownership structure is divided to five parts such: free-float shares, institutional ownership, govermental ownership, concentrated ownership and corporate ownership. For evaluating hypotheses, financial data of 100 companies Listed in Tehran Stock Exchange from 2006 to 2011 has been used. Balanced panel data model is used such that variables integrated from time series and cross-sectional data. Experimental results indicate that there is a significant positive relationship between ownership structure, ownership concentration and governanve ownership with information content of earnings companies listed in Tehran stock exchange, while there is no significant relationship between the free-float shares and corporate ownership with information content of earnings.