The Relationship between Financial Statements Comparability with Stock Price in Formativeness about Future Earnings

The present research deals with explaining the relationship between financial statements comparability and the stock price in formativeness regarding the future earnings as well as explaining the role of the financial statements comparability in reflecting the firm’s specific future earnings data and reflecting the future earnings data relevant to the industry in the stock price of the current period. The time period of this research for the 4-year has been considered from the beginning of 1386 till the end of 1389. However, data from 1383 to 1386 and 1390 to 1392 is also used to calculate some variables. The research sample consists of 85 listed firms in Tehran Stock Exchange. The multivariate regressions have been used for the statistical analysis. Four control variables-size, growth, loss and earnings volatility-have been used. According to the accomplished tests there is no positive relation between the financial statements comparability and the stock price in formativeness. The financial statements comparability does not contribute in reflecting the future earnings data relevant to the industry and reflecting the firm’s specific future earnings data in the stock price of the current period.