M.A. Thesis:

The relationship between Accounting Accruals and Heterogeneous investor beliefs and Stoch Returns

In any type of investment, investor seeks to earn returns and tries to know inforamtion about the future stock returns of companies. On the other hand, one way which presents a lot of inforamtion of company,s internal status is the income of every share. Investors have heterogeneous prior beliefs on a firm’s value. It seems that the difficulty in interpreting accounting accruals in the presence of potential earnings management could lead to heterogeneous investor beliefs regarding the firm value. The purpose of this research is to study the effect of heterogeneous Investor beliefs on the Tehran stock exchange companies. The sample which was studied contained 179 companies, in the years 2012-2017.To esimate the parameterz of regression modeles, we use least squars method, and this method is based on this a ssamption that the rest of the regression modele should be normal and this will happen whenthe dependent varibles of the study have a normal distribution. Which in this research, with the help of the kolmogrov-smirnov (K-S), this was done.In the inferential statistics section, the results of diagnostic tests (F limer test & Husman test) showed that appropriate estimation method in regression model is data panel method with fixed effects and we understood that theer is a reverse and meaningful relation between heterogeneous Investor beliefs and accounting accruals and the greater the amount of accounting accruals, the higher heterogeneous Investor beliefs. On the other hand, the effect of heterogeneous Investor beliefs and accounting accruals on the stock returns is direct and meaningful.of course, in otherto achive a more accurate interpretation, it seems necessary to measure the estimated average profit margin or its accuracy in relation to optional accruals to understand that reduce of this dispersion leads to more accuracy or more or predicting error. If the secondpossibility is correct, thenIranian analysts can not be considered professional because the close oroximity of the opinions ofa group does not always mean that they are correct. In this case, analysts prediction for those short-term investors can not work. According to definition of stock return in research which is calculated based on stock price changes at the beginning and end of the period, this claimcan be made that part of the prise bubble in the Tehran stock exchange arises from heterogeneous investor beliefs which in this research was considered in the from of predicting analgsts.In other words, the absenceof professional anglysts in Tehran,s capital market is evident, and an effort to educate and raise the level of these analysts can help reduce stock price bubbles and thus in crease market efficiency.

Keywords: : Heterogeneous Investor beliefs، Accounting Accruals، Stock Returns