M.A. Thesis:

Financial statement comparability and stock price crash risk

As responsible for preparing financial statements and with knowledge of the financial statements of the entity and having more information than investors and creditors, managers are potentially trying to make the image of the business unit desirable and in this regard, they tend to delay the disclosure of bad news and identify good news as soon as possible. The tendency of managers to hide and not disclosing the bad news, however, Leading to stock price crash risk. This paper aimed to investigate the relationship between the ability to comhc pare financial statements and the stock price crash risk in firms listed in the Tehran Stock Exchange (TSE). The sample consisted of 183 firms in the determined time scope (2009-2015). By examining the sample and using statistical tests as well, the paper seeks to answer this fundamental question “is there any a relation between the ability to compare financial statements and the stock price crash risk?”. Based on the results of the research and statistical tests at the level of error of %5, it can be said that “there is a significant relationship between the ability to compare financial statements and the stock price crash risk”.

Keywords: The ability to compare financial statements, stock price crash risk, size of the firm, Financial Lev