The ability of Elliott Waves Theory to predict the information content of accounting profit

Advances in Mathematical Finance and Applications

مقالات آماده انتشار، پذیرفته شده، انتشار آنلاین از تاریخ 08 تیر 1402

نوع مقاله: Research Paper

شناسه دیجیتال (DOI): 10.22034/amfa.2022.1950621.1685

نویسندگان

hossein alizadeh¹؛ majid zanjirdar^{* 2}؛ Gholamali Haji³

¹Department Of Management. Islamic Azad University, Arak branch. Arak, Iran

²Department of Financial Management, Arak Branch, Islamic Azad University, Arak, Iran

³Department of Mathematics, Arak Branch, Islamic Azad University, Arak, Iran.

چکیده

This study intent to investigate the ability of Elliott Waves Theory(EWT) to predict the information content of accounting profit before its announcement in companies listed on the Tehran Stock Exchange in the period of 1394 to 1399(Iranian calendar). The present study is applied research in terms of the result’s implementation and to collect the data required for the research, the information site of the publishers of Tehran Stock Exchange and Rahavard Novin software and for receiving Elliot Waves signals Advanced GET software has been used. Earnings information content was measured through the test of the relationship between earnings and abnormal returns and based on the Portetti model [20] and in order to calculate the abnormal returns, the Zebrowski comprehensive return relationship was used. Finally, the effect of two variables of company size and type of industry on the ability to predict information content is considered. The results showed that the quarterly profits announced by companies have information content, and EWT has the ability to predict profit information content before announcing it. In this regard, company size and industry type have no effect on Elliott Waves ability to predict profit information content.

کلیدواژه‌ها

Elliott Wave Theory؛ Profit Information Content؛ Insider trading Confidential information