Effect of Board's Characteristics on Earnings Informativeness by Considering the Moderating Role of Investor Sentiment

Based on theories, it is expected investors to be informed about profitability, make the decisions rationality without any emotional behaviors. The role of managers in strengthening the mechanisms of the company can increase the reliability of the profitability which is itself a factor affecting the investor sentiment. Therefore, the purpose of this study is to investigate the Effect of Board's Characteristics on Earnings Informativeness by Considering the Moderating Role of Investor Sentiment.This research is a library and analytical-scientific study and is based on the analysis of panel data (data panel). In this study, financial information of 136 companies listed in Tehran Stock Exchange during the 2010-2017 (952 companies-years) was investigated. Eviews software was used to analyze the results of the research.Based on the findings of this research, there is a negative and significant relationship between the Earnings informativeness and investor sentiment, as well as board's characteristics, including the independence, size and duration (experience) of the board, have a significant and direct effect. In this examination of the relationship between Earnings informativeness and the investor sentiment, it became clear that the independence, size and experience of the board would strengthen the negative relationship between them. In other words, these attributes contribute to the informativeness raising, as a result, less investor sentiment.