The Study of Effect Accounting Information Quality on Reflecting of information timeliness in Stock Price of Companies listed in Tehran Stock Exchange

Abstract Investors and managers are seeking of stock selection in investment of stocks firms that have optimize of profitability and they use of accounting information as a source of information in selecting of purchase and sale of own shares. If accounting information reported by entities, have quality, it can be affected in decision of investors. Therefore, in this research, we study the effect of accounting information quality on reflecting of information timeliness in stock price. So, to test the hypothesis, 71companies listed in Tehran Stock Exchange in the period 2002 to 2011 was chosen with using the systematic elimination method. Also, we utilized multiple- variables regression and pooling- data to analysis of data. Based on research of Andrew (2011), in this research, we used accruals quality and earnings smoothing to measuring of accounting information quality. Results indicate that there is a positive and significant relationship between accrual quality and earnings smoothing with Reflecting of information timeliness on stock price, but whatever, accounting information quality is higher, this information affects stock prices more quickly. Also, findings indicate that there is a positive (negative) relationship between firm size (corporate governance) and Reflecting of information timeliness on stock price, respectively.