The Effect of Financial Statement Comparability on Profit Sustainability, Accrual Pricing Efficiency, and Profit Predictability
Keywords:
Financial statement comparability, profit sustainability, accrual pricing efficiency, profit predictabilityAbstract
This study aims to examine the effect of financial statement comparability on profit sustainability, accrual pricing efficiency, and profit predictability. This research is descriptive–causal and ex-post facto in nature. The statistical population includes all firms listed on the Tehran Stock Exchange during 2015–2023. The sample consisted of 945 firm-years selected through systematic elimination. Logistic regression was used to test the first hypothesis, while multiple regression with panel data was applied for the second and third hypotheses. The results indicated that financial statement comparability has a positive and significant effect on profit sustainability. Furthermore, comparability significantly improves accrual pricing efficiency and enhances profit predictability. These relationships were statistically significant at the 99% confidence level. Financial statement comparability is a crucial qualitative attribute of reporting that improves investor decision-making, enhances informational transparency, strengthens capital market efficiency, and provides a foundation for developing new accounting standards and regulatory policies.
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Copyright (c) 2025 Hamzeh Anbari (Author); Masood Foladi (Corresponding author); Maryam Farhadi, Leila Safdarian (Author)
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
