The Effect of Financial Leverage on Earnings Response Coefficient
In this study the effect of "Financial Leverage (FL) on Earning Response Coefficient (ERC)" for accepted members of Tehran Stock Exchange is considered. The purpose is to find out whether or not the investors, analysts, etc. consider the capital structure and leverages of the firms when re...
| Main Authors: | , |
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| Format: | Article |
| Language: | fas |
| Published: |
Allameh Tabataba'i University Press
2007-03-01
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| Series: | مطالعات تجربی حسابداری مالی |
| Subjects: | |
| Online Access: | https://qjma.atu.ac.ir/article_4229_ae9f858a3b047501d431c080cebc16fc.pdf |
| _version_ | 1797378417806540800 |
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| author | Mohsen Khoshtinat Hamed Fallah Joshaghani |
| author_facet | Mohsen Khoshtinat Hamed Fallah Joshaghani |
| author_sort | Mohsen Khoshtinat |
| collection | DOAJ |
| description | In this study the effect of "Financial Leverage (FL) on Earning Response Coefficient (ERC)" for accepted members of Tehran Stock Exchange is considered. The purpose is to find out whether or not the investors, analysts, etc. consider the capital structure and leverages of the firms when reacting to the good and bad news caused by revealing the accounting in formation.
Financial Leverage measurement approaches are of two divisions as follows:
I) Income Statement
2) Balance sheet
In this research balance sheet approach i s used. In this approach, two definitions have been considered for leverage.
I) Debit/ assets Ratio
2) Debit I equity Ratio
Both definitions are used here. Studying the only research hypotheses using the regression analysis during 2000-20004 indicates that in the first leverage definition there is a reverse relationship between FL & ERC in the whole sample and in high leverage and in the second definition i n high leverage. However in the first definition in low leverage and i n the second one in the whole sample and in low leverage there's no considerable relationship between ERC and FL. |
| first_indexed | 2024-03-08T20:06:37Z |
| format | Article |
| id | doaj.art-ec30ac8ad7654ff781449e0f0608540a |
| institution | Directory Open Access Journal |
| issn | 2821-0166 2538-2519 |
| language | fas |
| last_indexed | 2024-03-08T20:06:37Z |
| publishDate | 2007-03-01 |
| publisher | Allameh Tabataba'i University Press |
| record_format | Article |
| series | مطالعات تجربی حسابداری مالی |
| spelling | doaj.art-ec30ac8ad7654ff781449e0f0608540a2023-12-23T10:33:34ZfasAllameh Tabataba'i University Pressمطالعات تجربی حسابداری مالی2821-01662538-25192007-03-015171254229The Effect of Financial Leverage on Earnings Response CoefficientMohsen Khoshtinat0Hamed Fallah Joshaghani1عضو هیئت علمی دانشگاه علامه طباطباییکارشناس ارشد حسابداریIn this study the effect of "Financial Leverage (FL) on Earning Response Coefficient (ERC)" for accepted members of Tehran Stock Exchange is considered. The purpose is to find out whether or not the investors, analysts, etc. consider the capital structure and leverages of the firms when reacting to the good and bad news caused by revealing the accounting in formation. Financial Leverage measurement approaches are of two divisions as follows: I) Income Statement 2) Balance sheet In this research balance sheet approach i s used. In this approach, two definitions have been considered for leverage. I) Debit/ assets Ratio 2) Debit I equity Ratio Both definitions are used here. Studying the only research hypotheses using the regression analysis during 2000-20004 indicates that in the first leverage definition there is a reverse relationship between FL & ERC in the whole sample and in high leverage and in the second definition i n high leverage. However in the first definition in low leverage and i n the second one in the whole sample and in low leverage there's no considerable relationship between ERC and FL.https://qjma.atu.ac.ir/article_4229_ae9f858a3b047501d431c080cebc16fc.pdffinancial leverageunexpected earningsabnormal returnerc |
| spellingShingle | Mohsen Khoshtinat Hamed Fallah Joshaghani The Effect of Financial Leverage on Earnings Response Coefficient مطالعات تجربی حسابداری مالی financial leverage unexpected earnings abnormal return erc |
| title | The Effect of Financial Leverage on Earnings Response Coefficient |
| title_full | The Effect of Financial Leverage on Earnings Response Coefficient |
| title_fullStr | The Effect of Financial Leverage on Earnings Response Coefficient |
| title_full_unstemmed | The Effect of Financial Leverage on Earnings Response Coefficient |
| title_short | The Effect of Financial Leverage on Earnings Response Coefficient |
| title_sort | effect of financial leverage on earnings response coefficient |
| topic | financial leverage unexpected earnings abnormal return erc |
| url | https://qjma.atu.ac.ir/article_4229_ae9f858a3b047501d431c080cebc16fc.pdf |
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