اثر خصوصيات كيفي مرتبط با محتواي اطلاعات بر كيفيت سود

Effects of Qualitative Characteristics Related to the Information Content on Earnings Quality

In this study, we investigate the impact of qualitative characteristics of information content (as a measure of evaluating earning quality indicated in financial reporting conceptual framework) on earnings management. The purpose of this paper is to indicate whether or not earnings structure, with a proposed earning quality based on qualitative characteristics of financial information (such as relevance, reliability) leads to better decisions. For this reason we use the data of 107 firms for a period of 1373 (1994) to 1385 (2006). We use regression models for earnings and compare the Earnings Reaction Coefficient (ERC) and R2 to test the research hypotheses. In this study factor analysis is employed to classify sampled firms, into firms with quality and firms without quality. The findings indicate that ERC and R2 related to the earnings and price, increases with the increase in earnings quality, which in turn leads to better decisions. This finding is in accordance with conceptual framework of financial reporting ideas. With regard to the relative preference of investors, our regression models do not produce encouraging results to indicate that, investors have relative preference toward qualities of financial information such as, relevance and reliability.