Investigation Persistence Component Earning in Economic Foundations with Calculation Coefficient Sensitivity Each Industry and Comparison with Persistence Component Earnings in Accounting Fundamentals

Sayadi Somar, Ali; Sabzali Poor, Farshad; Nazarbigi Dehbalae, Hadis; Radmehr, Rasmiye

doi:10.22055/jiar.2018.24665.1184

Investigation Persistence Component Earning in Economic Foundations with Calculation Coefficient Sensitivity Each Industry and Comparison with Persistence Component Earnings in Accounting Fundamentals

Document Type : Original Article

Authors

Ali Sayadi Somar ¹

Farshad sabzali poor ²

hadis nazarbigi dehbalae ³

Rasmiye radmehr ⁴

¹ Ph.D. Student of Accounting, Tarbiat Modares University, Tehran, and Lecturer of Accounting, Ilam University, Ilam

² Ph.D. Student accounting of Tarbiat Modares University and Instructor accounting ilam University

³ MSc accounting Islamic Azad University, Branch, ilam

⁴ Management, Islamic Azad University,Department of Literature and Humanities,

10.22055/jiar.2018.24665.1184

Abstract

Investors and creditors and other users of financial statements are to achieve their goals for their earnings forecasts. Hence to understand this problem, which is a component of profit on the earnings forecasts is more effective and Persistence. In this study, the persistence of the components of earning perspective economic fundamentals, including systematic earnings and unsystematic earnings and comparison with the basics of accounting, including cash earning and accrual earning during the period of 8 years between 1388 to 1395 companies listed on Tehran Stock Exchange (classified in 13 industries and include 1000 year-Company) has been paid. By examining the data and analyzing the regression model of the research, the results shows that first hypothesis based on economic foundations of, systematic earning of unsystematic earning is persistences. Also the results of the second hypothesis shows that the basis of accounting fundamentals, cash Component of earning of accrual component of earning is persistences. The results of additional tests based on annual regression indicate that components earning in economic fundamentals more Persistence of components earning in accounting fundamentals. In other words, profits arising from general economic factors (systematic earning) have most persistence and accrual parts of earning have lowest persistence earning. Also Mining metal industry, ceramic tile, chemicals and non-metallic minerals have the highest coefficient sensitivity to general economic factors.

Keywords

Earning persistence

cash Component of earning

Accrual Component of earning

systematic earning

unsystematic earning