Business, Management and Accounting
8 years ago

Investors Unfazed by Earnings Quality in Tehran Stock Exchange Reactions.

THE EFFECT OF QUALITY OF EARNINGS ON EARNINGS RESPONSE COEFFICIENTS
Mahdi Moradi, Fallahi Mohammad Ali, Kami Mohsen

Paper Summary

The researchers looked at how the quality of a company's earnings affects how the stock market reacts to changes in earnings. They found that the quality of earnings doesn't really impact how investors respond to earnings changes in companies listed on the Tehran Stock Exchange. In simpler terms, investors don't seem to care much about whether a company's earnings are high, medium, or low quality when deciding how to react to earnings news.

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