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

Document Type : Research Paper


1 Department of Accounting and Management, Golestan Science and Research Branch, Islamic Azad University, Gorgan, Iran.

2 Department of Accounting, Aliabad Katoul Branch, Islamic Azad University, Aliabad Katoul, Iran.


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


Main Subjects

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