Accounting And Financial Reporting As An Information System Essay

Accounting And Financial Reporting As An Information System Essay

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Accounting and financial reporting as an information system is responsible for satisfying
informational needs for users of financial reports, especially shareholders and credit holders. Thus, the most important goal of accounting in the view of users is to provide and to offer useful information for user decision making. Power of offering useful information to facilitate their decision making procedure in the light of future situation is known as accounting information predictability. Since accounting takes into account needs of information users, it is important to offer accounting information for measuring and estimating firm performance, profitability and its stock returns.
The common purpose of all investors is to seek profit and to increase their wealth in the capital markets. Nowadays, in the developed countries, most of the real and legal investments are carried out through stock markets. Indeed, stock market is one of the most important investment centers in these countries. Therefore, the stock listed companies are trying to augment shareholders wealth by increasing the financial activities and adopting the best distribution policies. The development of the stock exchange markets has a considerable role in country’s economic growth.
Consequently, some policies should be adopted to make the investors show more interest in investing in stock markets. In order to encourage investors to gain financial assets, some conditions should be provided through which the investors would be able to obtain the required knowledge for appropriate economic decision making. At the time, both the individual and company investors have a lot of concern regarding the investment in the stocks and these concerns are due to the extreme fluctuat...


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...icant relationship between profitability information and stock price of the textile companies.
4) H4: There is a significant relationship between market value information and stock price of textile companies.

WORKING DEFINITION OF TERMS USED:

Stock Price:
The cost of purchasing a security on an exchange is called stock price. Researcher will use stock closing price in the annual reports of the sample companies.

Accounting Performance:
Accounting performance is a subjective measure of how well a firm can use assets from its primary mode of business and generate revenues. This term is also used as a general measure of a firm 's overall financial health over a given period of time, and can be used to compare similar firms across the same industry or to compare industries or sectors in aggregation. Following are the information which will be used in this research.

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