Research Article | OPEN ACCESS
The Effect of Information Asymmetry on Stock Return Predictability
Roya Darabi
Department of Accounting, South Tehran Branch, Islamic Azad University, Tehran, Iran
Research Journal of Applied Sciences, Engineering and Technology 2013 3:929-936
Received: June 19, 2012 | Accepted: July 04, 2012 | Published: January 21, 2013
Abstract
The aim of this research is to investigate the information content of operating income and cash flow operating with stock return in information asymmetry situations in the accepted companies at Tehran stock exchange. This study was done according to data obtained from 70 companies during 2006-2010.This is an after event research. This research is calcified as the applicable research. And the hypothesis was examined, using liner multiple regression. The results of the examination reveal that operating income and cash flow operating contain the information content and they can explain the stock return and on the other hand, information content of operating income and cash flow operating are different from each other and information content of operating income is higher than cash flow operating. Also, the results indicated that information asymmetry effects on the income information content and cash flow operating and whatever the information asymmetry is higher, then information content of cash flow operating is increased.
Keywords:
Cash flow operating, information asymmetry, information content, operating income, stock return,
Competing interests
The authors have no competing interests.
Open Access Policy
This article is distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution, and reproduction in any medium, provided you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license, and indicate if changes were made.
Copyright
The authors have no competing interests.
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ISSN (Online): 2040-7467
ISSN (Print): 2040-7459 |
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