The importance of earnings response coefficient (ERC) research arises mainly from the need to enhance confidence of a firm’s stakeholders in accounting information announcements, especially the equity investors, enabling them to make informed stock decisions. Due to the significance of this subject, this paper provides a review of the extant ERC literature and expounds on its evolution and development of the relevant theories, offers perspectives, and highlights the models used since 1968 when the earnings-to-returns relationship first became prominent. The study also evaluates the application of the ERC perspective and highlights the main empirical findings and also elucidates on related research methodologies applied to date and incorporates the relevant explicit and implied critiques. The main research results found while conducting this review supports the relevance of accounting information announcements to stock price formations, and therefore enhancing the confidence of investors and firm’s stakeholders in such announcements (Ball & Brown, 1968; Collins & Kothari, 1989; Cheng, 1994; Kothari et al., 2010; Ariff et al., 2011; Hwang & Zhang, 2012; Patatoukas, 2013; Mostafa & Dixon, 2013; Al-Baidhani et al., 2017). Researchers also calculated and evaluated relevant ERCs using different methods such as event study method and regression methods, and applying different approaches such as individual stocks approach and portfolios approach, as detailed in this review. In addition to the enhancement of the stakeholders’ confidence in the accounting information, this review paper will be useful to financial accounting standards setters and contributes to a holistic understanding of the literature on earnings-to-returns relationship.

This paper reports new findings from applying portfolio method, which shows a much bigger earnings impact on share prices (ERC) compared to the erstwhile reports of ERC using individual events, averaged over the sample. We estimate cumulative abnormal returns, CAR, across a test window for each quarterly earnings announcement event across one accounting year. The CARs are then regressed against earnings changes of individual firms and portfolios. The findings show a significant positive CAR when earnings increases; and a negative CAR if earnings declines. The ERC is very small in the test period of 2001-14, which is consistent with published results for years before 2000. The ERC size magnifies substantially due to the grouping effect used through portfolio formation. What is significant is that the use of portfolio method, by removing the idiosyncratic errors, show a price response very close to the size of earnings. The last evidence supports strongly the value relevance accounting theory that has not seen much support from averaging the price responses of individual event responses.

The purpose of this study is to investigate how earnings announcement event affects stock returns at Karachi Stock Exchange (KSE). For this purpose we use the KSE-100 Index as our sample. We use the CAR Analysis to analyze the impact of earnings announcement over the stock returns around announcement dates. Our results suggest that KSE experiences abnormal stock returns around earnings announcement dates for the overall market and for different categories which indicate that efficient market hypothesis does not hold in Pakistani market and point out the presence of informational dissemination inefficiencies in the market.

Documentary credits are one of the foreign trade tools that are accepted by all parties involved in the fields. The research problem is determined by two aspects: the first is the fact that is affected by the accounting treatments of financial operations of different nature and objectives of the organization. The second is a lack of accounting control procedures to the documentary credits within the government units and public corporations in Iraq. The research aims to describe the impact of the nature and objectives of the organization. The accounting procedures of documentary credits are proclaimed through a comparative study of the accounting procedures of the documentary credits in the accounting systems of Iraq. The research hypotheses based on the following hypotheses: 1. There is a difference in accounting procedures for the documentary credits in accordance with the unified accounting systems of Iraq. 2. The mechanism of implementation and the various types of documentary credits are used by the organization in Iraq after 2003. It was previously led to inadequate accounting control procedures. Research found that the most important set of conclusions is that the difference in the basis of accounting, expenses depended in the government accounting system, uniform accounting system led to different accounting procedures for documentary credits between the two systems.

The financial management and public debt law issued form the Coalition Provisional Authority by order no. 94 in 2004 which ceased the use of the common public budget of the state law no, 107 in 1985 and the general accountings principles law no, 28 in 1940 to ‫ﻋﺒﺪﺍﷲ‬ ] ٢٠ [

The system of government in both Iraq and Lebanon is one of the distinctive and rare systems of government in the world, with systems of government close to them in some countries of the world. It is based on the consensus of the political forces emanating from the social components of the people. Constitutional texts or agreements have been agreed in advance that are close to unwritten constitutional customs, Lebanese and Iraqi experience has proved to the extent that it is a system that can be followed in countries with multi-ethnic pluralism to manage the demands and needs of social components. Therefore, we can say that it is one of the important and effective strategies in how to build the system of government, its form, consolidate its foundations and ensure that no political forces encroach on the system of government and is unique, because each political force has a social reference that returns to its sub-identity to achieve its needs and interests. Political consensus came to balance the similar and opposing interests of those components. But the Iraqi situation, despite the recent application of this regime in it, there are signs that the behavior of Iraqi citizens in some of his areas is directed towards the inclusive national identity, especially in elections, by recommending those who are more efficient and exceeding those sub-identities.