The objective of this research is to study the role of the predictive
ability of the profits to reduce the asymmetry of information in the
Damascus Securities Exchange, has been studying the concept
and importance of the quality of profits, and th
e main determinants
of the quality of earnings and of the ability predictive of profits and
informational content of accounting earnings, in addition to
studying the concept of asymmetry of information, and standards
basic asymmetry of information.
This research aims to identify the possibility of using the information of accruals (Depreciation and Provision) basis in predicting stock market returns for companies listed at Damascus Security Exchange. The study is applied on (11) companies durin
g the period from the first quarter of 2010 until the second quarter of 2014. The hypotheses are tested using approach of simple and multiple linear regression. The research conclude that the information of accruals basis can’t predict stock market returns for next period for companies listed at Damascus Security Exchange, unless the control variables are entered, Book to Market ratio, Beta & Earning to Price ratio.