Investigation of the type and Information Content of Accounting Adjustments of Firms Listed in the Tehran Stock Exchange

The purpose of this study is investigation of the type and information content of accounting adjustments of Firms Listed in the Tehran Stock Exchange (TSE). In this regard, in order to measure the information content of accounting adjustments, the mean cumulative abnormal returns before and after the information has been released. The data used, has been extracted from firms listed in the Tehran Stock Exchange (TSE) in the period 1380-1389. A paired comparison test is used for testing of hypotheses and data analyses. The results of the present study showed that there accountings adjustments have been information content to capital markets and the market shows negative reaction to the accounting adjustments. Also, results showed that the Iran capital market shows a negative reaction to accounting adjustment of errors kinds accounting, income and costs transfers; So that the difference in average abnormal returns for these adjustments were %3/41, %3/44 and %4/52. In addition, the results showed that the cumulative abnormal returns before and after the publication of information on the accounting adjustment of type positive accounting errors, there is not a significant correlation, Therefore, we cannot determine that the market reacts to such adjustments or not. In other words, the capital market show not is interpreting reaction to accounting adjustments of positive accounting errors.