Investigating the effect of Accruals on the Heterogeneity of investors' Beliefs and their interaction on Stock Returns

The vague conditions and cognitive mistakes that are rooted in human psychology make investors mistakes in shaping their expectations and, as a result, display special behaviors when investing in financial markets. The purpose of this study is to study how accruals affect the heterogeneity of investor beliefs on the value of a company and the effect of the interaction of these two variables on the stock returns of the company. This research is a descriptive-correlative research in terms of purpose and application. Data from 151 companies for the seven-year period (2009 - 2017) were analyzed using combined data and multivariate linear regression analysis. The research findings showed that accrual items have a significant positive effect on investors' beliefs heterogeneity, investors' beliefs heterogeneity is affected by stock returns, and the results also show that the heterogeneity of investors' beliefs is affected by the relationship between accruals and stock returns.