The Relationship Between Changes in Dividend and Earnings Quality in the Capital Market

Ali Zareie¹ Aiuob Yaghmaei Alishah² Zahra asadi arjenake³

1) MA Degree In Accounting From Islamic Azad University Central Tehran Branch
2) accounting graduate of the institute of higher education mizan
3) Graduate student accounting azad university of Ardakan

IOI Code : XYAC-ZCACH
Publication : 3rd.International Conference on Modern Research’s in Management,Economics & Accounting(3meaconf.com)
Abstract :
    Participants in the capital market reaction to dividend changes according to earnings quality has been investigated in this study. Ability to pay dividends on a regular basis to predict future cash flow to provide investors. Change dividends to individuals participating in capital market helps its forecasts of future cash flows to be reassessed. They accordingly reacts to changes in the company s cash dividend and stock price change. Since the quality of earnings-related news already reflected in the financial statements and reactions market, expected market reaction to dividend increase does not show much. Based on earnings quality based on the stability of earnings, the market reaction to the increase (decrease) in cash in accordance with forecast profit negative (positive).

Keywords : earnings quality earnings quality changes in dividend