عنوان مقاله [English]
نویسندگان [English]چکیده [English]
Financial reports are important means for analyzing companies' information and performance for investors; so we should emphasize on representing them correctly. Accounting restatements have been occurring with increasing frequency in recent years so that the investigation of the value relevance on financial information regarding the return is an important matter for the developing countries like Iran. The purpose of this paper is to investigate the value relevance of earnings restatements that means whether return changes are associated with the earnings restatements (Are they value relevant?). Also, this paper will answer to this question that whether future earnings changes are associated with the earnings restatements? 171 companies have been selected to the sample over a period of 5 years from 2006 to 2010 listed in the Tehran Stock Exchange and the pooled time regression method is used to analyze the data. Results from test show that earnings restatements are negatively associated with returns. Investors react the most negatively to earnings restatements because restatements have the potential to create uncertainty about future of the company. We found evidence that earnings restatements are negatively associated with future earnings changes too. Infect, investors significantly downgrade assessments of future earnings after restatements and investor confidence will be hit hard. This result signals that investors would rely less on earnings releases after financial restatements. At the end, the results indicate that companies should become more careful in releasing annual financial statements to retain investors' confidence.