Farshidpoor et al., Int. J. Rev. Life. Sci.

, 5(3), 2015, 712-723

ISSN 2231-2935
Research Article
www.ijrls.pharmascope.org

The Study of the Determinants of Systemic Risk on Earnings Response

Coefficient
Alireza Farshidpoor1, Ali Laelbar2, *Seyed Masoud Merati3
1

Department of Accounting, Arak Branch, Islamic Azad University, Arak, Iran

Department of Accounting, Arak Branch, Islamic Azad University, Arak, Iran
3
Department of Accounting, Arak Branch, Islamic Azad University, Arak, Iran

ABSTRACT
The aim of this study was to determine the effect of systemic risk factors on earnings response coefficient is in the
Tehran Stock Exchange. The 5-year study period listed companies in Tehran Stock Exchange for the years 2013 to
2008were studied. Between the 70 companies examined using multivariate linear regression analysis, the software SPSS17,The impact of the determinants of systemic risk under 5 criteria standardized unexpected earnings,
provide growth, leverage ratio, the variability of operating profit and operating profit growth rate of earnings response coefficient was measured. There are two sizes of company earnings stability index was considered as a
control variable, Test results show that the benefits of standardized unexpected earnings response coefficients,
the standardized unexpected earnings and earnings response coefficient of variation between operating profit and
earnings response coefficient is statistically significant But there is a significant relationship between the authority
and the power to grow and profit growth rate of reaction and reaction rate of interest was not confirmed.
Keywords Standardized Unexpected Earnings; Provide Growth; Leverage Ratio; Variability of Operating Profit;
Operating Profit Growth; Earnings Response Coefficient.
INTRODUCTION
In the world of investment decision today is perhaps
the most important part of the investment process in
which investors to maximize their profits and wealth,
requires decisions to be optimized. In this connection,
the most important decision-making information. Information can have a significant impact on the decision-making process. Because decisions will be different in different people. Exchange of information is also
affected investment decisions. Theorists securities
markets, financial reporting are the most important
source of information for investors .That's why one of
the purposes of accounting and preparation of financial statements provide information to facilitate decision-making. Because not all information in the possession of the same information asymmetry between
managers and investors is created. Information asymmetry situation that managers with investors has not
disclosed information about the various aspects of the
company's future operations and are This causes the
impetus and opportunity management directors have
the benefit. Calculate the net profit of an enterprise is
affected by estimates and accounting methods. Therefore, there is a possibility of manipulation or earnings
management. Management incentive to manipulate
* Corresponding Author
Seyed Masoud Merati
Email: sm.merati@yahoo.com

their profit goals that not only does not align with the
goals of the company and shareholders, but in most
cases it is in conflict.Securities analysts, corporate executives, investors and individuals who are involved in
the capital markets to the benefit of the most attention
as the last item in the income statement on that information. Overemphasis on profit reminded that the
market ignores other performance indicators Accounting profit as the end result of the process that so much
attention is the users of accounting information, accounting practices that affected the selection of management and have been calculated. Accounting income
and its components, including information when decisions are taken by the people. This figure is calculated
on the accrual basis and recognized Incentive management with the use of non-conservative accounting
practices, improve the stability of the company's
growth. Although various individuals and groups, different motives for the preparation and presentation of
information, however, if the data is bad news, justify
the need to hide and there will be no disclosure,Of
course, keeping bad news secret that the relative previous knowledge about it is, to a large extent seems
unlikely.
In fact, since the individuals and groups deemed completely risk averse, they are ready to make the access
to information and appropriate protection against the
impact of bad data, amounts to hide the type of information to spend. Without effective protection, consid-

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erable losses in the bear market and the market

movement of wealth from the many to the winners,
the losers would be small The use of bad news for the
reallocation of economic resources in more favorable
investment opportunities apart from bearing losses
from displacement can lead to an appropriate return
wealth to the extent that the losses incurred as compensation. Hiding and concealing information allowing
the specific value of information increases .With emphasis on claims of losers and winners is very low in
the market, the main reason for the players in the
market to reduce the secrecy and concealment of information to understand, Actions by creating demand
for public release of information, meaningful and effective tool to reduce the risks of investors in the market
distribution Requirements for Non-traded securities
based on inside information by executives economic
unit, an example of the rules regarding the distribution
of risk in the market .Among the good news and bad
news about the financial situation in the market can
be, liquidity, risk and profit forecasts noted. Therefore,
to understand and explain the reasons for the different
market reactions to earnings data, the response rate of
interest was raised as a concept The reaction rate of
profit, efficiency unexpected market reaction to unexpected components reported earnings measures (Kothari, 2001)
In several studies of the relationship between the reaction rate of profit and financial variables were evaluated.In this study, we seek answers that are determinants of systemic risk on the interest rate affect the
response?
THEORETICAL AND RESEARCH BACKGROUND
Stock Exchange, a market economy in which the purchase and sale of securities under the conditions and
special rules applied. The stock offers the largest and
most important elements of the population of the
country in exchange forums, change in economic conditions, political and can quickly affect on the stock
exchange, it will fluctuate. In general, investors in the
decision-making regarding risk and return are two important factors. Despite significant investments in a
wide range of tools and resources to create congruence between these two variables have, often individual investors do not have these tools. Empirical research on accounting information for investors seems
to estimate the expected value and risk is useful yields.
Just bear in mind if accounting information content
and the time had no information on the effect of its
review of the forecast, there will be And thus will not
buy and sell decisions, decisions to buy or sell without
any change in the volume of transactions and prices
there .There fore, companies should focus on the benefits, the risks as a limiting factor for maximum efficiency in their management. According to modern
portfolio theory, risk is divided into two parts: the first
part, the systematic risk that the relevant market Second, non-systematic risk, which depends on the partic-

ular circumstances of each share. In this theory, the

risk of each asset beta - which is the standard size has a
systematic risk is measured. Therefore, one of the
most widely used and accepted Beta The most economists and financial market experts, to measure and
manage risk. The importance of this research is the
detection of systemic risk business relationships between the determinants of corporate earnings response coefficient to help users of financial information is to take the best decision.
Nicoo maram et al (2014) on "the economic consequences of the quality of accounting information with
an emphasis on the variable interest rate of reaction"
began, This study is among the experimental economic
research PAT quality of accounting information of
listed companies in Tehran Stock Exchange for a period
of 12 years from 2000 to 2011 is assigned to investigate the universe setting. This study seeks to answer
the question that companies that have good quality of
accounting information is the economic situation?
The side-benefit ratio is used by independent research .To calculate the dependent variables (economic consequences of accounting information quality)
criteria, such as the Tobin Q ratio, the average cost of
capital, the ratio of market value to book value of equity and the ratio of price to earnings per share have
been used. The findings indicated that the ratio of
market value to book value only the profit side, the
impact is significant and positive .In other words, the
interest rate charged and the information content of a
positive reaction in Iran capital market and therefore
have a positive economic outcome is.
Mohammad Ebrahimi Kordelor and mohmadi shad
(2014) to "The relationship between default risk and
interest rate reactions" began, Default risk is one of the
factors that previous studies have found it effective
interest rate of the reaction.The purpose of this study
was to investigate the relationship between default
risk and interest rate response is on the Tehran Stock
Exchange.Statistical sample of 132 companies listed in
the Tehran Stock Exchange, during the period 1388 to
1391 form. In this study, to measure the risk of default
of the scale of leverage and Falmer index is used. To
test the effect of default risk on the interest rate side,
reverse regression yields unusual and unexpected benefit has been used and the effect of systemic risk and
opportunity profit growth rate of reaction control. Research evidence suggests there is a significant negative
relationship between default risk and response rate
benefits. The results suggest that default risk, is important not only for creditors, It is also important for
investors and their reaction to the good news and bad
accounting earnings, affects.
Ariyaei mehr et al (2013) to study "the effects of nonpayment risk on earnings response coefficient" began,The information that investors, analysts and creditors are very important to the financial information

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that indicates the direction of the business and to ensure the continuity of the company's activity is relative.
One of the factors that will ensure the relative risk of
non-payment and the possibility of bankruptcy faced
with the uncertainty of an entity. In this sense the reaction rate of interest as compared to influence the
abnormal returns unexpected profit companies as a
measure of logical decisions, investors and other users
of financial examined And the effect of non-payment
risk as a measure of financial companies, the earnings
response coefficient was studied.4-year study period
from 1388 to 1391 were selected and analyzed by SPSS
software using descriptive statistics and hypothesis
testing inferential analysis, correlation analysis was
performed .The results of this study suggest a negative
effect on the risk of non-payment of interest is the response rate.
Minooei et al (2013) to "The relationship between debt
and dividends and stock price growth rate of operating
profit and return on equity in the Tehran Stock Exchange" began ,One of the purposes of accounting and
preparing financial statements, provide useful information to facilitate decision-making. These beneficial
effects can be predicted as financial items .And changes in accounting profit forecasts as a factor influencing
economic decisions has long been a favorite of investors, managers, financial analysts, researchers and the
creditors .In this study, the relationship between variables debt ratio and dividend and stock price growth
rate of operating profit and return on equity have been
tested and evaluated. The aim of this research is to find
the relationship and the impact of debt and Independent variables and stock prices to predict stock returns
is anticipated profits for years to come as well Data for
this study during 1386 to 1390 were studied, and the
population of the listed manufacturing companies that
were profitable during the period of investigation And
in the course of five years constantly on the exchange
transaction, the form. The results of the test, Pearson
correlation and multiple regressions for the six hypothesis suggests that Independent variables debt ratio and
dividend and stock price growth rate of operating profit is not the only variable significant relationship with
stock prices and stock returns have a meaningful relationship.
Mashayekhi & menatti (2013) to "investigate factors
affecting earnings volatility" began. According to the
researchers, previous volatility Accounting profit is
influenced by economic factors, and they caused. In
this paper, some accounting parameters such as characteristics associated with poor compliance, quality of
accruals and income smoothing Some Economic parameters including losses, company size, growth factors, industry, fluctuations in earnings and cash flow
and operating cycle companies were investigated. This
study used data from 400 participating companies
listed in Tehran Stock Exchange during 1380 to 1390
was conducted. The samples were grouped in five clas-

ses based on earnings volatility and average of each

accounting and economic factors as described above,
were compared. The results show that financial factors
and economic factors (with the exception of the company's operating cycle) the impact of significant fluctuations in the creation of profit.
Arab Mazar & yazdi (2011) to "examine the relationship between strategies to increase profits and earnings response coefficient, evidence of Tehran Stock
Exchange" began, This survey of 95 companies participated in the Tehran Stock Exchange during the years
1380 to 1387 were chosen as the sample The results
show that the strategy of increasing profitability and
earnings response coefficient, there is a significant relationship. In other words, companies with strategies
to increase revenue, reduce costs than companies with
strategies, larger earnings response coefficient.
Zakaria et al (2013) using a sample consisting of 334
listed companies in Bursa Malaysia, the relationship
between default risk and earnings response coefficient
began. In this study, the ratio of debt to equity will be
considered a measure of default risk. The results of
their study showed a significant negative correlation
between default risk by a factor of interest was the
reaction.
Chen et al (2011) study suggests that systemic risk refers to the risk of total collapse is a complex system, As
a result of actions taken by the institutions or individual elements in a system. Systematic risk is a matter of
great concern in modern financial markets and, more
broadly, in the management of complex business and
technical systems and engineering. Achieved a clear
framework to measure and manage systemic risk analysis based on real-time results All factors in the system
and beyond the normal parameters of the system offers. This framework is obviously an expanded definition of systemic risk measures instead of a rich set of
regulatory priorities. The framework of the systemic
risk in many specific measures of systemic risk has
been proposed. In addition, it can be a shadow price
for systemic risk to any agent that properly takes into
account External factors in the decisions that factors
internal to the organization takes.
Cheng and Nasir (2010), the 14 commercial bank in
China, the impact of financial risk in relation to efficiency gains seven factors examined. The results
showed that among the causes of financial risk, liquidity risk is only a negative and significant correlation with
response rate of profit.
Christian and Ray (2007), examines the relationship
between accruals, earnings management and response
rate benefits paid. He believed that the reaction rate of
profits companies reported an unexpected profit and
A large working capital accruals less than companies
with little working capital accruals Big or small their
working capital accruals were with the industry average. They are more focused on working capital accruals

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Because they believed that it is important that these

accruals will help the market better understand the
problems of cash from operations. During their 16year-old, 41,936 years were selected Then groups of
companies to increase profits or reduce their profits
were divided And finally to smaller groups with large
accruals and positive working capital, or working capital was negative with large accruals were classified.
Shangun (2007) examined the relationship between
default risk and earnings response coefficient. The results showed that the negative effect of default risk on
the final response rate of growth opportunities with
non-profit into cash, is reduced. He suggests that
growth opportunities can not be converted into cash,
shares risk and default risk may increase with stimulation and motivation to reduce risk aversion.
RESEARCH METHODOLOGY
This is a classification based on the objective of applied research. The aim of applied research, the development of applied knowledge in a particular field. The
study, the research methodology and the nature of
solidarity. The study objective is to determine the relationship between variables. To this end, in terms of
scale variables, appropriate measures will be available.

Hypothesis 2-1: The response rate of profit growth

provided there.
Hypothesis 3.1: Leverage ratio and a response rate of
profit there.
Hypothesis 4-1: the variability of operating profit and
profit rate of reaction there.
Hypothesis 5-1: The growth rate of operating profit
and profit rate of reaction there.
RESEARCH MODEL AND THE INTRODUCTION OF VARIABLES
The dependent variable:
The reaction rate of profit: the response rate of profit,
efficiency unexpected market reaction to unexpected
components reported earnings measures) Kothari,
2001).
The cumulative abnormal returns: as the difference
between actual returns and expected returns and total
returns to market (the same source)
To calculate the real return on shares of the following
formula is used:
Equation (1):

STUDY OF STATISTICAL SAMPLES

The present research study involving companies in the
Tehran Stock Exchange is 2013-2009 years. The systematic elimination method is used to select the sample and the number of firms that were selected by systematic sampling of 70 companies in 350 yearscompany.
1) The financial year 1388 to 1392 on the exchange
involved.
2) the end of the fiscal year end of March each year
and in the fiscal year have not changed during the
above mentioned period.
3) In all the years of study at the end of the fiscal year
the necessary data are available.
4) company, the investment companies, banks, insurance and financial intermediaries not vary.
5) Companies that do not interrupt the trading more
than 4 months.
6) Trading Symbol active participation shares have
been traded at least once a year.
THE HYPOTHESIS OF THIS STUDY

Where: T:The stock price at the time of, Pt The stock

price at the time , Rt Daily in Stock Returns Is. (Ibid)
To calculate the expected return of the overall stock
market return index is calculated as:
RETURN OF THE MARKET:
Equation (2):

It: Exchange general index at the end of the period

It-1: Index of the stock at the beginning of the period.
Independent Variable
Systematic risk factors are independent variables
under the following criteria:
Unexpected benefit: the difference between real earnings and the expected profit is defined( ibid)

The main hypothesis of this study 1 and 5 secondary

hypothesis is:

To calculate the difference between real returns and

standardized unexpected earnings expected profit
Beaver model used.

Hypothesis 1: The determinants of systemic risk and

interest rate reactions are related.

Equation (3):

Hypothesis 1-1: The standardized unexpected earnings and earnings response coefficients are related.
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To neutralize the effect of unexpected size stock price

gains over the stock price at the beginning of the period divided by the standard variables of the unexpected
benefits obtained. Calculate the expected value of the
random walk model Beaver (1972) is as follows:

Operating profit growth rate (GROWTH): is equal to the

average percentage change in operating income (ibid).

Equation (4):

Ei, t (Xt):Expected profit company

Sustainability benefits that can be derived from the

standard deviation of dividends, so that the standard
deviation is greater stability of earnings less dividends
(Ibid).

Xi, t: EPS of the company

THE METHOD OF DATA ANALYSIS

t :In the last 5 years average EPS changes

Data needed for testing, the application processor and

the company's financial statements were devised and
data preparation software, Excel, analysis and research, using models and hypotheses were SPSS17.

Ei,t (Xt)=Xi,t +t

The company had growth ratio of market value to book

value of equity, MTB investment. (Zanjirdar et al.,
1389).
Financial leverage, calculated by dividing total liabilities to total assets (ibid).
Variability of operating profit (VOLA): is equal to the
standard deviation of changes in operating profit (ibid).

Control Variable
Size: the natural logarithm of total assets (Ibid.)

Descriptive Data
To check the general profile of the basic variables (series) to estimate the model (model), and a detailed
analysis, the estimation of descriptive statistics of the
variables is required.

Table 1: Indicators describing the variables

)CAR(
053
32075.
3250

)VOLA(

LEV

053

053

520.66

020374

025433

025333

0240746

0230640

462430

472..0

52660

52.00

02..5

452.70
3260

32404

032.70

MKTBK
053
32657.0
32675.0

)UE(
053

32404

32404

0426.3

002.60

52705

32404

0325.0

Average

320033

Middle

3240464

Standard deviation

323.3

Variance

32640

Skewness

32404

4257
0.2.0

32.04

32.04

426.

42.0

032.0

00260

4270
0.200

JK Welfare & Pharmascope Foundation | International Journal of Review in Life Sciences

Standard error
coefficient of
skewness

32.54

Elongation

32.04

Standard error
coefficient of
elongation

323.

The lowest

3206

Maximum

32.04
32.04

Count

30055

02704.

402.57

Indicators

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Table2: Indicators describing the variables

(SIZE)

)GROW(

)PER(

Indicators

053

053

053

Count

44260..

32476.

325706

Average

4426353

324033

325033

Middle

300606

34.30.

3245.37

Standard deviation

324.4

32307

323.0

Variance

32060

42764

-32007

Skewness

3404

3404

3404

Standard error coefficient of skewness

32356

52766

-32.0.

Elongation

32.04

32.04

32.04

Standard error coefficient of elongation

43255

-32.4

3243

The lowest

4023.

4203

320.

Maximum

This image contains indicators is to describe variables. 2 or greater than +2, assuming normal Boone will be
The first row of the data shows, the second row of data rejected. The dispersion of the index compared to the
means that data on a regular basis the distribution is normal distribution is the stretch factor .The stretch
exactly at the point of interaction with the center. ratio of the standard error, the standard error is the
Middle third row of data shows. Data Central show coefficient of elongation. In the last two lines of data as
that 50% and 50% less than the number of data greater well as the highest and lowest observations have been
than the number set Being close to the mean and me- reported.
dian, the data show symmetry. Skewness symmetric
THE RESULTS OF THE RESEARCH HYPOTHESIS
distribution relative to a certain index suggests. The
Hypothesis 1-1: The standardized unexpected earnings
coefficient of skewness to its standard error standard
error is called the coefficient of skewness.Which can be and earnings response coefficients are related.
considered as a normal test, if the amount is less than Table (3) correlation, coefficient of determination, adjusted coefficient of determination and standardized unexpected earnings variable Watson dobin test and the response rate of profit

Dobin-Watson

Standard error estimates

Adjusted
coefficient of
determination

1.975

.37894

.166

The painting (3) The correlation coefficient between

variables, 0.419 This figure shows a strong positive

The
coefficient of Correlation
determinatio coefficient The
model
n

.176

.419

correlation exists. The coefficient of determination

adjusted is calculated as the number of 0.166 to indi-

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Farshidpoor et al., Int. J. Rev. Life. Sci., 5(3), 2015, 712-723

cate that this number stating that Approximately 17%

coefficient of variation of the response variable by variable interest standardized unexpected earnings coverage and explanation is given. One of the regression
assumptions of independence of errors, if the errors
independence hypothesis is rejected And errors are
correlated with each other, there is the possibility of
regression. Watson statistic camera used to evaluate

the independence of each other errors If the base Watson camera at a distance of 1.5 to 2.5 is its lack of correlation between errors assumption is confirmed And
can be used regression. Watson camera base, the
above image is 1.975 This number indicates that there
is no autocorrelation between data and errors are independent of each other and can be used regression.

Table (4): coefficients of the regression equation standardized unexpected earnings variable interest rate reaction
Standardized
coefficients

Test line

Not standardized coefficients

model

Variance Tolerance
statistics
inflation
p.value
t
factor
.000

Beta

-4.075

SE

Beta

.643

-2.622

Intercept

1.027

.974

.034

2.129

.108

.116

.248

Standardized
unexpected
earnings

1.008

.992

.000

-6.007

-.301

.145

-.869

Sustainability
benefits

1.126

.888

.000

7.483

.396

.053

.398

Company
Size

Partial regression coefficients table shows. The output

image (4), and in column B to the constant and coefficients of control variables in the regression equation is
presented and the equation is as follows:

The output level of significance standardized unexpected earnings variable as the independent variable
less than 5% as a result of the null hypothesis is rejected.

YCARi,t = -2.622 + 0.248 UE i,t

0.398size + ei

Hypothesis 2-1: The response rate of profit growth

provided there.

0.869 PER i,t +

Table (5) correlation, coefficient of determination, adjusted coefficient of determination test variable Watson
dobin provide growth and interest rate reaction

Dobin-Watson

Standard error estimates

Adjusted
coefficient of
determination

1.672

.11003

.0178

The results presented in the above table shows that

the correlation between the variables0.137 This figure

The
coefficient of Correlation
determinatio coefficient The
model
n

.0188

.137

shows that there is a positive correlation. The adjusted

coefficient of determination calculated as number

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0.188 Shows The numbers suggest that approximately rors If the base Watson camera at a distance of 1.5 to
18% of variables by variable interest rate response will 2.5 is its lack of correlation between errors assumption
be provided to increase the coverage and explanation. is confirmed And can be used regression. Watson
One of the regression assumptions of independence of camera base, the above image is 1.672 This number
errors, if the errors independence hypothesis is reject- indicates that there is no autocorrelation between data
ed And errors are correlated with each other, there is and errors are independent of each other and can be
the possibility of regression. Watson statistic camera used regression.
used to evaluate the independence of each other erTable (6): variable regression equation coefficients provide growth and interest rate reaction
Standardized
coefficients

Test line

Not standardized coefficients

model

Variance Tolerance
statistics
inflation
p.value
t
factor
.000

9.418

Beta

SE

Beta

.187

1.759

Intercept

1.151

.869

.071

1.814

.087

.036

.066

Provide growth

1.008

.992

.000

-11.603

-.523

.042

-.487

Sustainability
benefits

1.126

.888

.000

6.466

.308

.015

.100

Company Size

Partial regression coefficients table shows. The output

Table (4), and in column B to the constant and coefficients of control variables in the regression equation is
presented and the equation is as follows:

The output level of significance standardized unexpected earnings variable as the independent variable
less than 5% as a result of the null hypothesis is rejected.

YCARi,t = 1.759 - .0487 PER i,t + 0.100 SIZEi,t + ei

Hypothesis 3.1: Leverage ratio and a response rate of

profit there.

Table (7) correlation, coefficient of determination, coefficient of determination adjusted leverage ratio test and
the response variable interest Watson dobin

Dobin-Watson

Standard error estimates

Adjusted
coefficient of
determination

1.994

.43175

.262

The image (7) The correlation coefficient between variables, 0.521. This figure shows a strong positive correlation exists. The coefficient of determination adjusted
is calculated as the number of 0.262 Shows The numbers suggest that approximately 27% coefficient of
variation of the response variable by variable interest
coverage and leverage ratios will be explained. One of
the regression assumptions of independence of errors,
if the errors independence hypothesis is rejected And
errors are correlated with each other, there is the pos-

The
coefficient of Correlation
determinatio coefficient The
model
n

.272

.521

sibility of regression. Watson statistic camera used to

evaluate the independence of each other errors If the
base Watson camera at a distance of 1.5 to 2.5 is its
lack of correlation between errors assumption is confirmed And can be used regression. Watson camera
base, the above image is 1.994 This number indicates
that there is no autocorrelation between data and errors are independent of each other and can be used
regression.

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Table (8): variable regression equation coefficients of leverage and interest rate reaction
Standardized
coefficients

Test line

Not standardized coefficients

model

Variance Tolerance
statistics
inflation
p.value
t
factor
.000

-5.294

Beta

SE

Beta

.733

-3.880

Intercept

1.027

.974

.031

2.166

.109

.133

.287

Leverage

1.008

.992

.000

-5.293

-.264

.165

-.872

Sustainability
benefits

1.126

.888

.000

7.993

.421

.061

.484

Company Size

Partial regression coefficients table shows. The output

Table (9) and in column B as control variables in the
regression equation coefficients are constant and the
equation is as follows:
YCARi,t = -880/3 + 287/0 LEV i,t 872/0- PER i,t + 484/0
SIZEi,t +ei

The output variable significant level of leverage as the

independent variable less than 5% as a result of the
null hypothesis is rejected and accepted.
Hypothesis 4-1: the variability of operating profit and
profit rate of reaction there.

Table (10) correlation, coefficient of determination, adjusted coefficient of determination and dobin test variability Watson variable operating profit and earnings response coefficient

Dobin-Watson

Standard error estimates

Adjusted
coefficient of
determination

2.058

.11236

.229

The
coefficient of Correlation
determinatio coefficient The
model
n

.239

.489

The Table (10) The correlation coefficient between

variables, 0.489 This number indicates that there is a
positive correlation. The coefficient of determination
adjusted is calculated as the number of 0.229 to indicate that This number indicates that approximately
23% coefficient of variation of the response variable by
variable interest coverage and variability of operating
profit is explained. One of the regression assumptions
of independence of errors, if the errors independence
hypothesis is rejected And errors are correlated with
each other, there is the possibility of regression. Watson statistic camera used to evaluate the independence of each other errors If the base Watson camera at
a distance of 1.5 to 2.5 is its lack of correlation between errors assumption is confirmed And can be
used regression. Watson camera base, the above image is 2.058 This number indicates that there is no
autocorrelation between data and errors are independent of each other and can be used regression.
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Farshidpoor et al., Int. J. Rev. Life. Sci., 5(3), 2015, 712-723

Table (11): variable regression equation coefficients and coefficients of variability of operating profit Response
Standardized
coefficients

Test line

Not standardized coefficients

model

Variance Tolerance
statistics
inflation
p.value
t
factor
.014

-2.460

Beta

SE

Beta

.191

-.469

Intercept

1.027

.974

.001

3.246

.167

.035

.112

Variability of
operating profit

1.008

.992

.000

-4.844

-.247

.043

-.208

Sustainability
benefits

1.126

.888

.000

6.892

.371

.016

.109

Company Size

Partial regression coefficients table shows. The output

Table (11) and in column B as control variables in the
regression equation coefficients are constant and the
equation is as follows:
YCARi,t = -0.469 + 0.112 VOLA i,t -0.208 PER i,t + 0.109
SIZEi,t +ei.

In this output, the significant level of variability in the

amount of fixed and variable operating profit as the
independent variable and control variables, size and
stability of the profit was less than 5% and the hypothesis is confirmed.
Hypothesis 5-1: The growth rate of operating profit
and profit rate of reaction there.

Table (12): correlation, coefficient of determination, adjusted coefficient of determination and Watson dobin
test variable rate operating profit and earnings response coefficient

Dobin-Watson

Standard error estimates

Adjusted
coefficient of
determination

1.5 79

.29401

.1502

The Table (12) correlation between the variables, 0.389

This number indicates that there is a positive correlation. The adjusted coefficient of determination calculated as number 0.1502 Shows The numbers suggest
that approximately 15% coefficient of variation of the
response variable by variable interest coverage and
operating profit growth rate can be explained. One of
the regression assumptions of independence of errors,
if the errors independence hypothesis is rejected And
errors are correlated with each other, there is the possibility of regression. Watson statistic camera used to
evaluate the independence of each other errors If the
base Watson camera at a distance of 1.5 to 2.5 is its
lack of correlation between errors assumption is confirmed And can be used regression. Watson camera
base, the above image is 1.579 This number indicates

The
coefficient of Correlation
determinatio coefficient The
model
n

.1513

.389

that there is no autocorrelation between data and errors are independent of each other and can be used
regression.

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Farshidpoor et al., Int. J. Rev. Life. Sci., 5(3), 2015, 712-723

Table (13): reaction rate coefficients of the regression equation variable rate of growth of operating profit and
profit
Standardized
coefficients

Test line

Not standardized coefficients

model

Variance Tolerance
statistics
inflation
p.value
t
factor
.000

5.852

Beta

SE

Beta

.477

2.790

Intercept

1.023

.978

.061

4.422

.210

.090

.0098

The growth rate

of operating
profit

1.128

.887

.000

-3.859

-.193

.119

-.458

Sustainability
benefits

1.234

.810

.000

5.581

.292

.043

.241

Company Size

Partial regression coefficients table shows. The output

Table (13) and in column B as control variables in the
regression equation coefficients are constant and the
equation is as follows:
YCARi,t = 2.790 0.458 PER i,t + 0.241 SIZEi,t +ei
The output, a significant amount of fixed and variable
operating profit growth rate as independent variables
more than 5%, after confirming the hypothesis against
the null hypothesis is rejected.
RECOMMENDATIONS BASED ON FINDINGS

information and, in particular, and its efficiency in

terms of their own decision-making model.
PROPOSALS SUBJECT TO FUTURE RESEARCHERS
1. The effect of the company's life cycle response rate
of corporate profits.
2. The relationship between the reaction rate of profit
and liquidity of shares in Tehran Stock Exchange.
3. The relationship between financial variables and the
response rate of profit in the Tehran Stock Exchange.

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