1
Assistant professor of accounting, Bu Ali Sina University
2
M.A. in Accounting
Abstract
Some views indicate that income smoothing can predict future performance of companies and prepare useful information for interested group. The aim of this study is to test this view in companies listed in Tehran Stock Exchange. We have followed this target by focusing on earnings persistence and divided policy persistence as proxies for anticipating companies' future performance in companies that have smoothed their earnings. Financial information was collected from a sample of 66 firms for the period of 2008 to 2012. We have used multiple linear regressions and Logistic Regressions to test our hypothesis. The results show smoothed income has significant negative impact on earnings persistence and don’t have significant impact on dividend policy persistence. These results mean earnings smoothing in TSE companies is not done with the purpose of preparing useful information for anticipating future performance.
Shamszadeh, B., & Almasi, B. (2017). Studying the role of Smoothed Earnings on Future Performance of firms listed in Tehran Stock Exchange. Accounting and Auditing Research, 9(34), 122-137.
MLA
Bagher Shamszadeh; Behnam Almasi. "Studying the role of Smoothed Earnings on Future Performance of firms listed in Tehran Stock Exchange". Accounting and Auditing Research, 9, 34, 2017, 122-137.
HARVARD
Shamszadeh, B., Almasi, B. (2017). 'Studying the role of Smoothed Earnings on Future Performance of firms listed in Tehran Stock Exchange', Accounting and Auditing Research, 9(34), pp. 122-137.
VANCOUVER
Shamszadeh, B., Almasi, B. Studying the role of Smoothed Earnings on Future Performance of firms listed in Tehran Stock Exchange. Accounting and Auditing Research, 2017; 9(34): 122-137.
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