the Effect of Free Cash Flow Agency Problem on Stock Returns Synchronicity and Financial Reporting Quality
Financial reports are tools that transfer accounting information to users,particularly investors. When the reporting quality is poor, investors rely on industry and market-level information. This action contributes to greater stock return movement with market and industry return, and Increases stock...
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| Format: | Article |
| Language: | fas |
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Allameh Tabataba'i University Press
2016-09-01
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| Series: | مطالعات تجربی حسابداری مالی |
| Subjects: | |
| Online Access: | https://qjma.atu.ac.ir/article_7106_752f3c2a54b978a0bff91ecd7e63db5b.pdf |
| _version_ | 1797378319960768512 |
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| author | Shadi Jandaghyan Shadi Jandaghyan |
| author_facet | Shadi Jandaghyan Shadi Jandaghyan |
| author_sort | Shadi Jandaghyan |
| collection | DOAJ |
| description | Financial reports are tools that transfer accounting information to users,particularly investors. When the reporting quality is poor, investors rely on industry and market-level information. This action contributes to greater stock return movement with market and industry return, and Increases stock return synchronicity. Factors such as free cash flow agency problem may cause distortion of information quality by managers as a result outsider investors are misled. The purpose of this study is to investigate the effects of free cash flow agency problem on stock return synchronicity and financial reporting quality. In order to test the hypotheses, data of 105 firms listed in Tehran Stock Exchange during the years 1388 to 1392 were used. Findings of research signify that companies with strong free cash flow agency problem have a greater stock return synchronicity. Results also indicate that free cash flow agency problem has a significant and negative impact on the financial reporting quality. Thus investors who invest in the stock exchange and their main attention is focused on free cash flow, must to consider free cash flow agency problem as a factor affecting decisions. |
| first_indexed | 2024-03-08T20:06:07Z |
| format | Article |
| id | doaj.art-79b8d67ee1a14f208ece6aa2f799e9a5 |
| institution | Directory Open Access Journal |
| issn | 2821-0166 2538-2519 |
| language | fas |
| last_indexed | 2024-03-08T20:06:07Z |
| publishDate | 2016-09-01 |
| publisher | Allameh Tabataba'i University Press |
| record_format | Article |
| series | مطالعات تجربی حسابداری مالی |
| spelling | doaj.art-79b8d67ee1a14f208ece6aa2f799e9a52023-12-23T10:36:29ZfasAllameh Tabataba'i University Pressمطالعات تجربی حسابداری مالی2821-01662538-25192016-09-01135112114410.22054/qjma.2016.71067106the Effect of Free Cash Flow Agency Problem on Stock Returns Synchronicity and Financial Reporting QualityShadi Jandaghyan0Shadi Jandaghyan1دانشجوی کارشناسی ارشد دانشگاه اصفهاندانشجوی کارشناسی ارشد دانشگاه اصفهانFinancial reports are tools that transfer accounting information to users,particularly investors. When the reporting quality is poor, investors rely on industry and market-level information. This action contributes to greater stock return movement with market and industry return, and Increases stock return synchronicity. Factors such as free cash flow agency problem may cause distortion of information quality by managers as a result outsider investors are misled. The purpose of this study is to investigate the effects of free cash flow agency problem on stock return synchronicity and financial reporting quality. In order to test the hypotheses, data of 105 firms listed in Tehran Stock Exchange during the years 1388 to 1392 were used. Findings of research signify that companies with strong free cash flow agency problem have a greater stock return synchronicity. Results also indicate that free cash flow agency problem has a significant and negative impact on the financial reporting quality. Thus investors who invest in the stock exchange and their main attention is focused on free cash flow, must to consider free cash flow agency problem as a factor affecting decisions.https://qjma.atu.ac.ir/article_7106_752f3c2a54b978a0bff91ecd7e63db5b.pdfkeywords: free cash flowfree cash flow agency problemfinancial reporting qualitydiscretionary accrualsstock returns synchronicity |
| spellingShingle | Shadi Jandaghyan Shadi Jandaghyan the Effect of Free Cash Flow Agency Problem on Stock Returns Synchronicity and Financial Reporting Quality مطالعات تجربی حسابداری مالی keywords: free cash flow free cash flow agency problem financial reporting quality discretionary accruals stock returns synchronicity |
| title | the Effect of Free Cash Flow Agency Problem on
Stock Returns Synchronicity and Financial Reporting
Quality |
| title_full | the Effect of Free Cash Flow Agency Problem on
Stock Returns Synchronicity and Financial Reporting
Quality |
| title_fullStr | the Effect of Free Cash Flow Agency Problem on
Stock Returns Synchronicity and Financial Reporting
Quality |
| title_full_unstemmed | the Effect of Free Cash Flow Agency Problem on
Stock Returns Synchronicity and Financial Reporting
Quality |
| title_short | the Effect of Free Cash Flow Agency Problem on
Stock Returns Synchronicity and Financial Reporting
Quality |
| title_sort | effect of free cash flow agency problem on stock returns synchronicity and financial reporting quality |
| topic | keywords: free cash flow free cash flow agency problem financial reporting quality discretionary accruals stock returns synchronicity |
| url | https://qjma.atu.ac.ir/article_7106_752f3c2a54b978a0bff91ecd7e63db5b.pdf |
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