عنوان مقاله [English]
نویسندگان [English]چکیده [English]
Abstract: The relationship between future earnings and current stock returns is called as future earnings response coefficient that indicates reflection of future earnings information in current stock price. The more information of firms be available to investors, their future earnings forecast will be more accurate. As a result, reflection of more future earnings information in current stock price, cause an increase in the relationship between future earnings and current stock returns. The aim of this study is to investigate the effect of product market competition on the future earnings response coefficient and also the moderator effect of institutional ownership on their relationship. To measure the future earnings response coefficient and the product market competition level, Collins et al (1994) adjusted model by Lundholm and Myers (2002) and Herfindahl-Hirschman Index is used, respectively. In order to achieve to the research goal, A total of 100 firms, including firms listed in Tehran Stock Exchange during the years from 2005 to 2015 were screened in the community. To test the hypotheses, a multivariate regression model with panel data is used. According to the results, the impact of product market competition on future earnings response coefficient, is significantly positive. Also, the effect of institutional ownership on the relationship between product market competition and future earnings response coefficient is significantly positive.