Investigating the Relationship between Accounting Earning and Gross Domestic Product in Companies Listed in Tehran Stock Exchange

Accounting earning represents the positive performance of companies during their pertinent financial periods, thus it is assumed that accounting earning will be noted by investors, which could contribute to the optimum allocation of resources to successful companies. It can also play a major role in the economic growth and development of a society. This research focuses in the relationship between accounting earning and gross domestic product (GPD). The research population includes all companies listed in Tehran Stock Exchange. Due to the limitations of sample size, 65 companies between 2009 and 2013 were studied. The findings showed that there is a significant relationship between accounting earning and GPD growth rate. A similar relationship was also observed between accounting earning and forecast errors of GPD growth. The control variables including inflation and employment rate had a significant relationship with GPD growth rate and forecast errors of GPD growth.