Investigating the Relationship between Accounting Earning and Gross Domestic Product in Companies Listed in Tehran Stock Exchange

Abstract

Accounting earning represents the positive performance of companies during their<br />pertinent financial periods, thus it is assumed that accounting earning will be<br />noted by investors, which could contribute to the optimum allocation of resources<br />to successful companies. It can also play a major role in the economic growth and<br />development of a society. This research focuses in the relationship between accounting<br />earning and gross domestic product (GPD). The research population<br />includes all companies listed in Tehran Stock Exchange. Due to the limitations of<br />sample size, 65 companies between 2009 and 2013 were studied. The findings<br />showed that there is a significant relationship between accounting earning and<br />GPD growth rate. A similar relationship was also observed between accounting<br />earning and forecast errors of GPD growth. The control variables including inflation<br />and employment rate had a significant relationship with GPD growth rate and<br />forecast errors of GPD growth.