Conceptual Explanation of the Effectiveness of Trading Volume around Earnings Announcements

The objective of this research is conceptual explanation of the effectiveness of Trading Volume around Earnings Announcements. The method of the present research is the method of historical cognition in the framework of library studies and is of the type of theoretical-critical research and based on research related to the subject.In general, the analytical approach has at least 4 important features; First, this view is often textual, meaning that it accepts that accounting has economic, political, and social implications. Second, this theory seeks participation and interaction. This means that it is always looking to change or improve accounting practices. Third, it is related to both micro (individuals and organizations) and macro (profession and society) levels, and the fourth is interdisciplinary and relates to, borrows from, and combines with other systems. Therefore, the critical view is more related to the accounting profession, system and procedures than traditional studies.The principle of disclosure is considered as one of the principles of accounting and according to this principle, all information related to the activities of the company should be provided to various groups in an appropriate and timely manner. In other words, information disclosure can be used to transfer information from a specific domain to a general domain. Proper and quality disclosure will improve transparency and reduce information asymmetry and market effectiveness.The effects that determine fluctuations in the capital market are innumerable. Past, present, and even neglected events are reflected in market prices, but often do not show a clear relationship with price changes.The results of this study provide useful theoretical information for policy makers and institutions that develop accounting standards on the quality of financial reporting for investors and develop the results of behavioral research in the field of finance.