چکیده (انگلیسی):

This research evaluated the relationship of return with Free Cash Flow (FCF) and earning before and
after restatement of financial statements. Stock return was used as the study’s dependent variable while Free cash
flow per share (FCFPS) and earning per share (EPS) were used as independent variables. A series of data collected
from the financial statements of 150 companies listed in Tehran stock exchange between 2008 to 2012 was used as
the study's data collection. According to the obtained results, before restated financial statements, there is a positive
and a negative relationship between EPS and dependent variable and FCFPS and dependent variable, respectively.
The negative relationship, however, is not significant. Following restatement of financial statements, FCFPS and EPS
have respectively a negative and a positive impact on companies’ return but again the impact is not significant. The
overall results indicated that before restatement, investors found their decisions on EPS. After restatement, the
explanatory power of information is decreased which in turn results in the decrease of the financial statements’
reliability.