چکیده:
Investigating the relationship between stock returns and accounting profit to study capital market efficiency and also evaluate the usefulness of information contained in financial statements is of particular importance. Accounting profit is one of the important items in financial statements that is used by many stakeholders as a basis for decision-making and forecasting. In this research, an attempt has been made to use several different models to examine the relationship between stock returns and accounting profit, and the results obtained from this relationship are compared with the cash flow model, which studies the relationship between stock returns and cash flows. Unlike other studies, an attempt has been made to evaluate the explanatory power of each model over a long-term period. The researcher seeks to answer the question of which of the variables, profit or cash flows, has greater ability in explaining long-term returns and which model is more suitable for studying the relationship between the variables included in basic financial statements and stock returns? The results show that in all models, the coefficient of determination increased as the time period became longer; however, no significant difference was observed in the coefficient of determination obtained from the different models. Accounting profit is the only variable that has a significant correlation with returns at all levels and models; the results of the study indicate that there is a significant relationship between stock returns and cash flow from operating activities over a long-term period. However, the explanatory power of profit models in explaining long-term returns is higher than that of the cash flow model.
خلاصه ماشینی:
Comparison and Analysis of the Role of Profit and Cash Flows in Explaining Long-term Return Ahmad Yaghoubnejad* Examining the relationship between stock returns and accounting profit to study capital market efficiency and also evaluating the usefulness of information contained in financial statements is of particular importance.
In this research, an attempt has been made to use several different models to examine the relationship between stock returns and accounting profit, and the results obtained from this relationship are compared with the cash flow model, which studies the relationship between stock returns and cash flows.
The results of the study indicate that there is a significant relationship between stock returns and cash flow from operating activities over a long-term period.
A summary of the results obtained from their study is as follows: "A brief review of stock prices in relation to the release of profit reports indicates that the information reflected in the profit figure is very useful and, regarding the change in reported accounting profit compared to the previous year, has a positive correlation with changes in stock prices.
" This model helps explain two things: first, why researchers use the results of Ball and Brown's studies obtained in the field of the relationship between profit and return; second, why it is assumed that accounting numbers are transmitters of information to the market.
Research Models First Model The first model is based on the EHO model, in which no variable is considered for measuring growth, and it is assumed that dividends are not reinvested: In this relationship: (refer to the page image) YT - Stock return.
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