The concurrent Impact of Stock Return, Operating Cash Flow Change and Sales Change on Asymmetric Timeliness of Earning

The purpose of this study is to investtigating the concurrent impact of stock return, operating cash flow change and sales change on asymmetric timeliness of earning.

To test the research hypotheses, 203 companies listed in Tehran Stock Exchange for the period 2008 to 2018 and using multivariate regression model of pooled or panel data.

Earning has an asymmetric responds to positive and negative including stock return, sales change, and operating cash flow change. Furthermore, the interaction effect of stock return and operating cash flow change increases the asymmetry timeliness of earning against both variables On the other hand, the interaction effect of stock return and sales change, increases the asymmetry timeliness of earning against sales change whilst not such impact observed against stock returns.

Asymmetry timeliness of earning is created with respect to good versus bad news about future cash flows where negative news seems to have more immediate impact rather than positive news. Including indicators drivers of the asymmetric timeliness of earning are stock return, sales change, and operating cash flow change and due to the interaction effect between these indicators, the possibility of changing the amount of asymmetric timeliness of earning against each of these indicators.

The impact of the interaction effect of affecting indicators on Asymmetry timeliness of earning can give more knowledge to financial information users and future researchers about the qualitative characteristics of affecting earning.