The Effect of Earning and Information Quality on Stock Trading

This study investigates the effect of earnings and information quality on stock trading. The statistical population consists of ۹۹ listed companies in Tehran Stock Exchange from ۲۰۱۳ to ۲۰۱۸. To test the hypotheses, multiple regression analysis of panel and pool data structure is used. The results show that the earnings persistence, earnings response coefficient, and accruals quality significantly affect the trading days’ ratio. Furthermore, it reveals an insignificant relationship between the annual stock return and trading days’ ratio. The results further reveal that the effect of earnings persistence and quality of accruals on stock trading turnover is similarly insignificant. Simultaneously, the earnings response coefficient and annual stock return significantly affect the stock trading turnover.

Keywords:

Earnings Persistence , Earning Response Coefficient , Quality of Accruals , Stock Trading