Evaluate the consequences of profit distortion on stock returns using models based on accounting variables

Document Type : Original Article


1 Ph.D Candidate, Accounting Department, ghaemshahr Branch, Islamic Azad University, ghaemshahr, Iran

2 Assistance Prof, Accounting Department, ghaemshahr Branch, Islamic Azad University, ghaemshahr, Iran



Analyzing the market situation and examining the trend of changes in its indicators is one of the important issues in the field of investment and one of the important topics in financial science studies. The present study aims to evaluate the consequences of profit distortion on stock returns, the information of the financial statements of 98 companies listed on the Tehran Stock Exchange between 1394 and 1399. This research is a descriptive research in correlation with the applied approach in order to compile theoretical foundations and backgrounds from valid scientific sources and to collect data from financial statements and attachments contained in the Codal site and information provided on the stock exchange Tehran securities site have been used. Findings show that there is a significant relationship between the probability of fraud according to the F index and the M index of companies and stock returns. There is also a significant difference between the returns of companies with the possibility of fraud according to F index and M index with other companies.


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