Investigating the Factors Affecting the Release Time Management of Profit of Companies Accepted in Tehran Stock Exchange

Abstract

After Patel and Wolfson (1982) who examined the relationship between news content related to profits and release time of this news during the week, other studies have been done showing that the profits that are declared in the weekend include worse news than releasing profit in the days of the week. It is assumed that opportunistic managers for this reason release their profits at these times, and media pay less attention to hide bad news from market. This study has tested the observations that have changed the profits declaration time between weekdays and weekends to examine more closely the strategic disclosure hypothesis. The hypothesis testing results based on over 4,500 cases of profit declaration during 2001 to 2011 show that directors of accepted companies in Tehran Stock Exchange do not schedule their profits declaration strategically. The effect of some factors influencing the choice of seasonal profits declaration time such as an unexpected benefit, the percentage of free float stock, industry, complexity of the activities of the company and company size during the weekdays were investigated by conducting the Logistic regression test. Among the various factors, test results showed a significant relationship only between the percentage of free float stock and the news announcement time related to the profit.