Investigation of the Value Relevance of Accounting Earnings With Respect to Measurement of Market Efficiency in the Listed Companies of Tehran Stock Exchange

In most value – relevance studies, regressions of stock prices or returns on accounting earnings are used to inferen the informativeness of earnings. There is substantial evidence to suggest that the market may not be completely efficient in the processing of public information. This study examines the effect of market inefficiency on the value relevance of earnings in Tehran Stock Exchange (TSE). We used a sample of active investment companies during 1379-1385. Hou and Moskowitz (2005) method has been used to compute measurement of market efficiency then by use of Collins and Haribar (2000) approach, primary and developed models for testing of research hypothesis were estimated. Our findings indicate that market inefficiency have negative effects on the value relevance of future earnings, and future operating; and no effects on future accruals and current profits.