A comparative study response rate of firms with business strategies and cost leadership firms with different business strategies to the announcement, using the equations of structural failure

In the present study the effect of the quality of corporate earnings announcements reaction ratio was investigated. Features strategies may lower the marginal cost sales with higher sales volumes, economies of scale and a major investment in facilities and physical assets named.Meanwhile, the differentiation strategy combined with high sales margins and the quality of the product and branding realized through investment in intangible assets such as investment in research and development and advertising is obtained. Characteristics of the above-mentioned double impact on investor reaction to the information published on the company's profits.The response rate in this study, a comparative study of companies with business strategies of cost leadership and firms with different business strategies to the announcement, has been using the equations of structural failure.In this regard, the 147 companies listed companies of Tehran Stock Exchange during the period 2009 to 2015 were studied and estimated using econometric software testing hypotheses to be explored.Using the equations necessary structural failure was that if during the review announcement,In each sample is decreasing, breakpoints and found it to be rectified.The system indicates the sustainability Ascending announcement, the company adopted a business strategy that is cost leadership.The other results of the present study is that companies that strategy cost leadership to follow, announcement, they are generally only to companies that method of differentiation to adopt the changes better earnings your users of financial information Company to showcase.As a result, companies that adopt distinct strategies with diverse interpretation and fewer changes in investor's beliefs are associated.This cross-sectional study to improve the level of knowledge about the market reaction to the announcement, the changes will help.In addition, in this study the convergence of market reaction to the announcement, through changes in business strategies in a predictable situation is shown.