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The Effect of General Policies of Article 44 of the Constitution on Improving Value Relevance of Accounting Information in Tehran Stock Exchange
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Mahmoud Moeinadin   , Ali Fazel yazdi * , Fatemeh Dinpajouh , Zahra Zarezadh |
| Department of Accounting, Yazd Branch, Islamic Azad University, Yazd, Iran |
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Abstract: (10005 Views) |
| One of the main features of regulation of structure is alteration of planned economy to the market economy. In Iran, this alteration accomplish with privatization and free investment through the implementation of Article 44 of the constitution. Therefore, one of the key factors in this regard is value relevance of accounting information for buyers. Value relevance of accounting information indicates the relevance and reliability of accounting information. So it can be used as an indicator for the quality of accounting information. Therefore, in this study we examine the effect of the general policies of Article 44 of the constitution on improving value relevance of accounting information within a 9 years period (from 2004 to 2007, 4 years before and from 2008 to 2012, 5 years after notice of Article 44 of the constitution) in Tehran Stock Exchange. The research sample was consisted of 84 firms, the independent variable of the study is stock market price and dependent variables are earnings per share, book value of shares, and operating cash flow (as a representative of basic financial statements). The results of the analysis of assumptions indicate that implementation of Article 44 of the constitution impresses the relationship between stock prices and earnings per share, book value of shares, and operating cash flow in Tehran Stock Exchange. In general, the results show the improvement in value relevance of accounting information after the implementation of Article 44 of the constitution. |
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| Keywords: Article 44 of the Constitution, Value Relevance of Accounting Information, Stock Price, Stock Exchange. |
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Full-Text [PDF 396 kb]
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Type of Study: Research |
Subject:
Special
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