The Investigation of The Effect of Accruals on Stock Returns after Financing Activities of Listed Companies in Tehran Stock Exchange

ABSTRACT: One of the basic criteria for deciding in exchange is stock returns, stock returns itself has the information content and Most potential investors use it in financial analysis and projections. The purpose of this research was to investigation the effect of accruals on stock returns after external financing activities of listed companies in Tehran stock exchange. Stock returns as the dependent variable and accruals, short-term debt, long term debt and equity were used as independent variable. To test the research hypotheses, the data on the 116 listed companies in Tehran stock exchange were analyzed as the statistical sample for the period 2002 to 2011 by using of the Panel data analysis methods and Respective statistical test. This study has two hypotheses. The result of first and second hypothesis shows that the accrual financing activities through shareholdersʹ equity and long-term debt and short-term debt has not a significant impact on returns.