One of the information that investors consider important are signals that are emitted from the firm’s future value. And one of the factors affecting the signals is Abnormal Earnings Growth Forecast of the firms. In this study, we analyze the impact of ex-ante abnormal Earnings growth on Earnings Response Coefficient. To aim this goal, 67 company’s information for the time period 2011-2015 was studied. The compound data ways used to test research hypothesis by multiple regression. Research results show that there were a positive and meaningful relationship between the ex-ante abnormal Earnings growth and Earnings Response Coefficient. So it can be argued that Abnormal Earnings Growth Forecast is an important factor in determining the Earnings Response Coefficient and Earnings Quality of companies.

Management Earnings forecasts and their characteristics may provide a signal about managers’ private information and/or confidence in their assertions. The signal allows investors to understand the relationship between management forecasts and future Earnings better, taking investors to price securities accordingly. The purpose of this paper is to investigate whether issuance of management forecasts and characteristics of the forecasts affect the relationship between returns and future Earnings. In this study, use of the FERC is particularly appropriate because various characteristics of management forecasts could have implications for the prediction of future Earnings. A forecast with characteristics that improves ability of investors to predict future Earnings should result in stock prices that better predict future Earnings, and results in a higher FERC.We follow Gelb and Zarowin (2002), Tucker and Zarowin (2006) and Choi and et al (2008) in our empirical tests, which use 347 firm/year observations from 2006 to 2011. Our empirical findings showed management forecasts affect the association between returns and future Earnings, if management forecasts are more frequent and precise. Moreover, we extend models further with control variables such as firm size, growth and profitable to the control for possible correlated omitted variables. Our empirical findings showed that management forecasts affect the association between returns and future Earnings if management forecasts are more frequent and precise. Forecasts with the characteristics viewed by investors are more credible than the forecasts without the characteristics.

In previous studies, the informational content of accounting variables was examined under conditions of the classic assumptions of economics and finance, that such a framework does not provide an insight on the effects of irrational behaviors of investors. However, theoretical literature and the results of recent empirical studies suggest that feelings of investors can affect their Response to accounting information and evaluation of companies' stock. Given the evidence of previous studies on the difference between the reactions to the accounting Earnings news, the effect of investors' tendencies on the estimation of the Coefficient of reaction to the accounting Earnings and each of its components are examined empirically in this study. Based on the data of 100 listed companies in Tehran Stock Exchange between the years 2010 and 2017, the results show that current and future Earnings have a positive and significant effect on stock returns, but investors' tendencies can decrease the Coefficients of Response to current Earnings. Further investigations suggest the negative effect of investors' tendencies on the Coefficient of cash and accrual components of future Earnings reflected in current stock returns.

One of the most critical questions after financial statements is why market Responses differ from companies with almost similar statements. This research aims to answer this question by identifying factors affecting the Earnings Response Coefficient. In this research, all of these factors were identified, classified, and ranked for the first time in Iran. The researchers carried out the research using Fuzzy Delphi in two phases, and Shannon's Entropy was done. The cross-sectional method was used, and the data were collected over several weeks. The statistical population included 40 experts who have been active in the Iranian capital market for many years. The results revealed that 46 factors directly influence the Earnings Response Coefficient in Iran. Finally, these factors were classified into five categories: the company’, s financial features and financial reporting, the company’, s market share, auditing quality, corporate governance, and environmental factors, then ranked with the aid of Shannon’, s Entropy.

Investors, creditors and financial analysts are interested in having information on income smoothing in companies they are willing to invest in. Various local and international studies reveal that the investors in investment decisions prefer smooth and less fluctuating income. Managers attempt to report profit and its growth rate as smooth. Most researches show that financial statements and profit declaration has information content. This study is conducted for two aims, one investigating the impact of unexpected Earnings on reaction of shareholders and another is impact of unexpected Earnings on investors return. In present study Earnings is taken as one of the most important variable in investors’ decision-making process, and seeks to see whether Earnings have information content or not? If the Earnings are the unexpected Earnings arising from Earnings smoothing incentives, by its declaration, does it lead to market Response and achieving abnormal returns? The population of this paper consists of all companies listed on TSE. By filtering (systematic elimination) approach, 99 companies are selected during 2008 to 2012 as the research sample. For data analysis, regression panel data analysis is applied. The results of the study show that Earnings can have information content and declaration of unexpected Earnings that is done by Earnings smoothing incentives by management causes that investors can interpret and understand the meaning of Earnings information well. Thus, investors’ reliability to acquire declared Earnings is increased and the increase of reliability of the investors leads to the increase of the impact of unexpected Earnings on abnormal returns and stock price.

Most of the studies investigated the relationship between accounting information and market value have emphasized on reduced value relevance of accounting information, especially Earnings. In reviewing these studies, there is a pre-assumption that market price is an appropriate alternative to the value of stocks; a claim which, based on many researches, may lead to wrong inferring in concluding based on this type of studies. Much evidence has been reported in previous studies indicating that market reaction to reported information, including accounting information, is not appropriate and the market, at least in the short term, does not react the effects of new information rightly. This issue might be involved in reducing the usefulness of accounting information. In order to test the reducingdriversof the correlation of Earnings with stock returns, in this research, the time trend of variations in the correlation of accounting earrings with stock returns was investigated and the share of each of these two variables was tested in variations in this relationship. The experimental results obtained from the review of the 15-year period of research suggest that the explaining power of accounting Earnings has been reduced significantly over time, but this reduction was due to a noise in the stock returns, which this feature of stock returns increased during the research period. While noise in the Earnings is a factor for reducing the correlation between two variables, but its effects is not statistically significant and the trend of variations has been reduced over time.

The current study is a positive investigation that examines the empirical economic consequences of accounting information quality in companies listed at Tehran Stock Exchange in a span of 12 years from 2000 to 2011. This survey answering question of how are the economic situations of companies with better accounting information quality? Earning Response Coefficient is used as independent variable. To calculate dependent variable (economic consequences of accounting information quality) we use various measures such as the Tobin’s q index, weight average cost of capital, the market value to book value of owner’s equity ratio, and price to Earnings per share ratio. Results show that Earnings Response Coefficient has the positive relation only with the market value to book value of owner’s equity ratio. In fact, the Earnings Response Coefficient has the meaningful content and positive economic consequences in Tehran stock exchange.

because of importance of accounting standards and Earnings Response Coefficient, in this research, a model has been presented according to the Iran Accounting Standards for evaluation Earnings Response Coefficient. Earnings Response Coefficient is one of the criteria that is important in the quality of accounting information, also it is a way that we can evaluate the Earnings quality. The Earnings Response Coefficient has been examined in two separated time, five years before implementing of accounting standards (1996 to 2000) and five years after implementing of accounting standards (2001 to 2005). for testing hypothesis , we used correlation analysis test and variance analysis test.The results show that there is a significant difference between Earnings Response Coefficient of companies before and after implementing of accounting standards.

The purpose of this study is to investigate the relationship between conservatism in accounting practices, Earnings Response Coefficient companies accepted in Tehran Stock Exchange in the period 2009-2013. For this purpose, the systematic elimination of 142 companies have been selected as examples. This study is a descriptive-correlation and data used in this research is panel data. To test the hypotheses, a multiple regression model to select the most appropriate model of panel data was used from Chow and Hausman test. The results show that the conservatism in accounting policies and Earnings Response Coefficient is negative and significant relationship.

Investors make their investments by considering available information, including the information provided in financial statements. Good news result in positive reactions by the investors and bad news result in their negative reaction. The concern for finding the relationship between ROE and the unexpected portion of companies’ Earnings announcements lead to the introduction of the concept of Earnings Response Coefficient, or ERC. The main goal of the present survey is to study the determinants of the ERC in the Tehran Stock Exchange. To perform this, the data for 158 corporations present in the Tehran Sock Exchange during 2006 to 2011 have been collected. Then the determinants of ERC have been studied. These determinants are: interest rate, systematic risk, growth opportunities and the financial leverage. The methods used for the study and the test of hypothesis are the econometric methods based on the panel data.The results of the study show that the financial leverage and the systematic risk have a negative and significant effect on the ERC, while the growth opportunity determinant has a positive and significant effect on the ERC. No significant relationships were found for the interest rate determinant.