Abstract
The Effect of Risk and Stock Returns on the Quality of Profits of Industries Listed on the Tehran Stock Exchange
Highlights
Major manipulation of audited financial statements by state-owned companies can be problematic for investors and other users of a company's financial statements
The present study seeks to find empirical evidence to answer the question of whether there is a significant relationship between profit quality and risk in the Iranian capital market or not
With the identification of risk-free assets (RF), portfolio theory moved towards capital theory and capital asset pricing model
Summary
Major manipulation of audited financial statements by state-owned companies can be problematic for investors and other users of a company's financial statements. Revenue quality refers to "the ability of reported income to reflect actual income, as well as the usefulness of reported income in predicting future earnings" Accurate measurement of earnings is important because current earnings are useful for predicting future earnings This is an indicator of the ability to pay dividends in the future. According to the theoretical foundations of Iran's financial reporting, the information provided by the accounting system can only meet the minimum required standards in the economic decision-making process. These are standards which are called qualitative characteristics of accounting information can increase the useful ness of information (Auditing Organization, 2007). The findings of this study, while filling the research gap in this field, can be functional for managers, investors, stock market policymakers and other stakeholders is decision making
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