The effect of the accrual anomaly (growth and accounting distortions) on the performance and future stock returns

Mahdi Hasanbaglou, Heidar Mohammadzadeh Salteh

Abstract


Accrual anomaly that implies the negative relationship between accruals and future stock returns, dedicated different researches to itself . This research examines the impact of the accrual anomaly (growth and accounting distortions) on the performance and future stock  returns  of  companies listed on the Tehran Stock Exchange. The study population consisted of listed companies in Tehran Stock Exchange. A sample of 146 companies are selected by using the systematic sampling method for the period 2009 to 2013.The methods of ordinary least squares regression and panel data and software EVIEWS have been used to test the hypotheses. The results of this study show that the accrual anomaly (growth and accounting distortions) has no impact on future stock returns and accrual anomaly (growth and accounting distortions) has a significant and negative impact on the company's future performance.


Keywords


Accrual Anomaly, accounting distortions, the Company's future performance, future stock returns.

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