Accounting and Auditing Research

Accounting and Auditing Research

Analysis of the Application of Accounting Information in Style Investing

Document Type : Original Article

Authors
Mojtaba Soleymani Mareshk 1
Seyed Abbas Hashemi 2
Saeid Samadi 3
1 PHD Student, University of Isfahan, Departman of Accounting, Iran
2 Associate Professor, University of Isfahan, Departman of Accounting, Iran
3 Associate Professor, University of Isfahan, Departman of Economy, Iran
10.22034/iaar.2020.112782
Abstract
The purpose of accounting, as an information system, is to provide information needs and improve economic decisions. In this research, the use of accounting information as a style in "style investing" has been surveyed. In style investment, instead of paying attention to a particular company, assets are first categorized on the basis of a specific attribute then an asset is selected from that category. The accounting variables are the earnings per share, the book value, the size, and the operating cash flows to sales ratio. The sample includes 381 companies listed in Tehran Stock Exchange between 1387 and 1393. The results show that all of the variables are used as "style" by investors; however, the operating cash flow ratio narrowly used. According to the results, companies with lower the earnings per share, book value and size have experienced higher purchasing demand.
Keywords
Style Investing
Accounting
Value Relevance
Accounting and Auditing Research
Volume 12, Issue 46
Summer 2020
Pages 97-112