The Effect of Abnormal Accruals on the Cost of Stock Traiding in Accepted Firms in Tehran Stock Exchange

Abnormal Accruals give information about company’s value to investors while investors in understanding the true value of companies may face with this problem that the information asymmetry between informed and less informed traders can increase the transaction costs. The purpose of current research is the investigation of the effect of Normal Accruals on the Cost of Stock Trading in Accepted Firms in Tehran Stock exchange. This research regarding the purpose was an applied study and also regarding the method was a descriptive-correlation study. The research population consisted of the active companies in Tehran Stock Exchange between years of 9002-9012, that have presented its financial statements to Tehran Stock Exchange in these years. Sampling was systematic removal and by using this method 20 companies have been selected for appropriate modeling and statistical analysis. Using the combined data, modeling and multivariate regression the hypotheses have been tested. The research findings were showed that there is significant relationship between Abnormal accruals and Cost of Stock Trading.

Keywords:

Abnormal Accruals , Cost of Stock Trading , Multivariate Regression