Role EPS to future earning changes

Abstract

Capital market investors with a better understanding of the effects of earnings per share and earnings per share of changes in future profits of various industries to invest instocks that them to obtain maximum efficiency. This study factors of influencing in changes of firms future earnings for predicting future earnings changes include earningsper share is discussed. Statistical community in this study consists of all companies listed securities Tehran. To perform this study, the sample consisted of 110 companieslisted in Tehran Stock Exchange during the duration (2004-2010) was evaluated and selected. This study design a model using multiple regression and error level of 5% waspaid to test these assumptions. Research findings indicate that between " earnings per share " and future earnings changes and positive significant relationship exists. Theresults of the test sub-hypothesis states that research for companies that market to book value of equity yields higher and higher change of dividends factor have therelationship between future earnings changes is stronger. © EuroJournals, Inc. 2011.