Analysis of the effect of Accruals Strategy on Return on Investment Firms

This study analyses the effect of traditional and percent accruals strategies on excess and risk adjusted returns. In this analysis, the characteristics of investment firms were controlled. For this purpose, we collect quarterly data of 33 investment firms listed in Tehran Stock Exchange for the years 2011-2018. The hypotheses were tested using linear regression analysis. We find that traditional accruals strategy has a significant positive effect on excess return. But there is not a significant relationship between traditional accruals strategy and risk adjusted return. Moreover the results show that the percent accruals strategy has a significant positive effect on excess and risk adjusted returns.