Determination of Replacement or Supplemental Relationship to Explain Accruals Anomalies and Disclosure Quality in Tehran Stock Exchange

In this study, the relationship between accruals quality, disclosure and abnormal stock returns is evaluated. The aim of this study is the assessment of replacement or supplemental relationship between accruals quality and disclosure to predict changes in abnormal stock returns. Existing theories and studies on the relationship between accruals quality and disclosure has shown different effects on abnormal stock returns. In this study, given the negative correlation between accruals quality and disclosure to predict unusual changes in stock returns is tested. The research hypothesis is tested by using financial data of 102 companies listed in Tehran Stock Exchange during the period 2006 - 2014 by utilizing a model of Fama and French and multi - regression analysis. Based on the results, the quality of accrual and disclosure quality are the same and verifying each other and this confirms the replacement relationship among them.