Thesis:

The Influence of Leverage, Earnings Persistence, and Firm Size on Earnings Responses Coeffient

The earnings response coefficient measures the amount of abnormal returns of securities in response to unexpected earnings of the company issuing those securities. Various factors affect the earnings response coefficient. Among these factors are the variables of financial leverage, earnings stability, and company size. The main objective of the study is to investigate the effect of financial leverage, earnings stability, and company size on the earnings response coefficient in the Tehran Stock Exchange. In order to investigate this issue, the research hypotheses were tested based on a statistical sample of 120 companies during the years 2019 to 2023 and using multivariate regression models. The research findings showed that there is a negative and significant relationship between financial leverage and profit stability with the profit response coefficient, and a positive and significant relationship between company size and profit response coefficient. This indicates that the profit response to the variables of financial leverage and profit stability is decreasing and to the variable of company size is increasing.

Keywords: Keywords: Capital structure, Financial leverage, Earnings sustainability, Company size, Earnings res