Testing the rational expectations hypotheses on accounting numbers in Tehran stock exchange

The purpose of this paper is to test the persistence and pricing of earnings, CFO and accruals using Iranian data. In response to arguments concerning omitted variables in the Mishkin (1983) test, it seeks to explore asymmetric effects by incorporating omitted variable capturing firm size, firm growth, sales and its variations and net operating assets into forecasting and pricing equations. The results indicate that, 1) CFO is more persistent than ACC, 2) excluding omitted variables, stock market price earnings and its components irrationally and 3) including omitted variables, stock market price earnings and its components irrationally, too

Corporate Governance Stability And its Impact on the Quality of Accounting Information of Companies Listed on the Iraq Stock Exchange

Purpose: This research attempts to examine the influence of corporate governance stability on the accounting information quality.   Theoretical framework: Stability in different mechanisms of corporate governance can help companies develop coherent plans and strategies and achieve their goals. Multitudinous changes in factors such as ownership and management and monitoring institutions such as independent auditors and members of audit committee can make changes in the company's goals thus affecting the financial reporting quality as a means of accountability of corporate governance elements.   Methodology: The stability of corporate governance was measured using four criteria, namely managerial stability, ownership stability, independent audit tenure stability, and audit committee tenure stability. The statistical population includes the companies admitted to the Iraq Stock Exchange, and the research sample has been selected by the application of the conditions of the study variables to 55 companies in 2011 and 2020. In order to analyze the data and test the hypotheses, the statistical technique of multiple regression with panel data has been used.   Finding: This work shows that the first hypothesis is rejected and that the managerial stability is negatively correlated with the accounting information quality. Moreover, according to the results, the second hypothesis of the research is also rejected and ownership stability is negatively correlated with the quality of accounting information. The third hypothesis outcomes also indicate the rejection of the research hypothesis and the independent auditor tenure stability and the accounting information quality have a similar relationship. Accordingly, the audit committee tenure stability is not significantly correlated with the accounting information quality.   Research, Practical & Social implications: The results of testing the hypotheses showed that the greater the stability in the governance and monitoring elements of companies, the lower the quality of accounting information.   Originality/value: Prior studies have focused on one or more corporate governance criteria and measured their impact on the accounting information quality. It should be noted that none of the conducted studies have provided a model to identify the impact of corporate governance on the accounting information quality