Investigation of Effect of Information Content Net Earnings on the Stock Price Changes (Case study of Tehran Stock Exchange)

This paper has studied change of stock prices toward actual net earnings and predicted net earnings announcement in Tehran Stock Exchange. For analyzing hypotheses, stock price changes were studied in two dates of actual net earnings and predicted net earnings announcement and also one month after that date. Statistical population of research included companies that their stocks were traded actively in Tehran Stock Exchange during annual period of 2011. Two hypotheses of research were analyzed by sign test and chi2- test. The results show that in announcement day of actual net earnings and predicted net earnings, there is a significant relationship that include information content of predicted net earnings between observed frequencies in price change.