A comparative study of the effect of operating accruals components on future profitability and future stock returns in the automotive, cement and base metals industries
The ever-expanding financial issues of companies have led to new debates about their future profits. In this regard, many researchers have sought new relationships between accounting variables, including accruals, and financial and economic issues. The present study uses the operational aspect of accruals and their components, which was first created by Richardson in 2006 and then developed by Papanastasopoulos from 2011 to 2017, to investigate the effect of operating accruals components on profitability and future stocks returns. The statistical population of the study consists of three industries of Tehran Stock Exchange, including automotive, cement and basic metals industries. Using systematic removal sampling, 55 companies were selected and the subject of the research was comparative and during the period 2010 to 2014. The statistical method used to test the research hypotheses is multivariate regression using OLS and EGLS methods. Findings indicate that in all three industries, there is no significant relationship between total operating accruals and its components with future stock returns; However, the existence of a negative relationship between total operating accruals and future stock returns is confirmed; But this relationship is not statistically significant. On the other hand, no significant relationship was found between the relationship of operating accruals and its components with future profitability, except in the cement industry.
Sadrara, M., MohammadNoorbakhsh Langroodi, M., & Haghgoo Tabalvandani, N. (2018). A comparative study of the effect of operating accruals components on future profitability and future stock returns in the automotive, cement and base metals industries. New Applied Studies in Management, Economics & Accounting, 1(1), 33-48.
MLA
Mehrdad Sadrara; Mohsen MohammadNoorbakhsh Langroodi; Nastaran Haghgoo Tabalvandani. "A comparative study of the effect of operating accruals components on future profitability and future stock returns in the automotive, cement and base metals industries". New Applied Studies in Management, Economics & Accounting, 1, 1, 2018, 33-48.
HARVARD
Sadrara, M., MohammadNoorbakhsh Langroodi, M., Haghgoo Tabalvandani, N. (2018). 'A comparative study of the effect of operating accruals components on future profitability and future stock returns in the automotive, cement and base metals industries', New Applied Studies in Management, Economics & Accounting, 1(1), pp. 33-48.
VANCOUVER
Sadrara, M., MohammadNoorbakhsh Langroodi, M., Haghgoo Tabalvandani, N. A comparative study of the effect of operating accruals components on future profitability and future stock returns in the automotive, cement and base metals industries. New Applied Studies in Management, Economics & Accounting, 2018; 1(1): 33-48.
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