Examining the effect of trading volume on Earning Response Coefficient over the Life Cycle of companies

Since the first research on Earning Response Coefficient, one of the most important directions of studies conducted in financial accounting is explaining and identifying different factors affecting the Earning Response Coefficient for companies. Also it can be shown that the financial characteristics are not the same in different periods of a firm's life cycle and changes depending on period and the situation it is placed. In other words, the financial characteristics are influenced by the stage of the life cycle, therefore, the firm life cycle can be used as a key for stronger forecasting as well as making more logically decisions. Therefore, the purpose of this research is to investigate the effect of the firm's life cycle on the relationship between stock trading volume and the Earning Response Coefficient of listed companies in Tehran Stock Exchange.This research is a type of applied research in which the financial data of 151 companies during the period of 2013 to 2022, including 1510 observations, were examined. The results show that the effect of the trading volume on the Earning Response Coefficient is different in different stages of the life cycle, and it is more in the Stagnation Stage than in other stages. The results show that the life cycle is an influential factor in the relationship between the trading volume and the Earning Response Coefficient, so that the adjusted determination coefficient changes with the entry of each of the life cycle variables into the regression equation.