The effect of the reliability of accounting information on systemic risk on listed companies at Tehran Stock Exchange

Abstract

One of the most important subjects in the financial management is the systematic risk which has always been focused on by the researchers. Due to the vastness of the market, there exist different devices for the investment in every financial market. The main goal of the shareholders, business owners and those who are concerned is to produce the optimum return and they face some risks in order to reach their goals and the fundamental requirement is to keep the relation between the risk and the return balanced. In other words, the decision makers of the stock markets produce their desired return by using the financial information of the companies. Therefore, the investigation into the risk and the factors influencing the risk is of importance. This article studies the reliability of the accounting information upon the systematic risk. To test the hypothesis, the data obtained from 52 companies listed on the Tehran stock exchange from 2006-2010 were chosen by the systematic deletion method and were tested by using the multi-variable regression. The conclusion suggests that there is a significantly positive statistical relation between the reliability of accounting information and the systematic risk.

Accrualls and systematic risk in Brazilian companies

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