Effects of Management Earnings Forecasts on Future earnings response coefficient

Management earnings forecasts and their characteristics may provide a signal about managers’ private information and/or confidence in their assertions. The signal allows investors to understand the relationship between management forecasts and future earnings better, taking investors to price securi...

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Autores principales:	Ali Rahmani, Nazanin Bashiri Manesh, Seyedeh Smaneh Shahrokhi
Formato:	article
Lenguaje:	FA
Publicado:	Shahid Bahonar University of Kerman 2012
Materias:	keywords: management earnings forecast ferc forecast haracteristics Accounting. Bookkeeping HF5601-5689
Acceso en línea:	https://doaj.org/article/070e5f8b91524b47a721f08fdf040eb6
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spelling	oai:doaj.org-article:070e5f8b91524b47a721f08fdf040eb62021-11-04T19:42:36ZEffects of Management Earnings Forecasts on Future earnings response coefficient2008-89142476-292X10.22103/jak.2012.443https://doaj.org/article/070e5f8b91524b47a721f08fdf040eb62012-11-01T00:00:00Zhttps://jak.uk.ac.ir/article_443_624df8a867441c95dd3009ca6e4a2da4.pdfhttps://doaj.org/toc/2008-8914https://doaj.org/toc/2476-292XManagement earnings forecasts and their characteristics may provide a signal about managers’ private information and/or confidence in their assertions. The signal allows investors to understand the relationship between management forecasts and future earnings better, taking investors to price securities accordingly. The purpose of this paper is to investigate whether issuance of management forecasts and characteristics of the forecasts affect the relationship between returns and future earnings. In this study, use of the FERC is particularly appropriate because various characteristics of management forecasts could have implications for the prediction of future earnings. A forecast with characteristics that improves ability of investors to predict future earnings should result in stock prices that better predict future earnings, and results in a higher FERC. We follow Gelb and Zarowin (2002) , Tucker and Zarowin (2006) and Choi and et al(2008)in Our empirical tests, which use 347 firm/year observations from 2006 to 2011. Our empirical findings showed management forecasts affect the association between returns and future earnings, if management forecasts are more frequent and precise. Moreover, we extend models further with control variables such as firm size, growth and profitable to the control for possible correlated omitted variables. Our empirical findings showed that management forecasts affect the association between returns and future earnings if management forecasts are more frequent and precise. Forecasts with theAli RahmaniNazanin Bashiri ManeshSeyedeh Smaneh ShahrokhiShahid Bahonar University of Kermanarticlekeywords: management earnings forecastfercforecast haracteristicsAccounting. BookkeepingHF5601-5689FAمجله دانش حسابداری, Vol 3, Iss 10, Pp 29-50 (2012)
institution	DOAJ
collection	DOAJ
language	FA
topic	keywords: management earnings forecast ferc forecast haracteristics Accounting. Bookkeeping HF5601-5689
spellingShingle	keywords: management earnings forecast ferc forecast haracteristics Accounting. Bookkeeping HF5601-5689 Ali Rahmani Nazanin Bashiri Manesh Seyedeh Smaneh Shahrokhi Effects of Management Earnings Forecasts on Future earnings response coefficient
description	Management earnings forecasts and their characteristics may provide a signal about managers’ private information and/or confidence in their assertions. The signal allows investors to understand the relationship between management forecasts and future earnings better, taking investors to price securities accordingly. The purpose of this paper is to investigate whether issuance of management forecasts and characteristics of the forecasts affect the relationship between returns and future earnings. In this study, use of the FERC is particularly appropriate because various characteristics of management forecasts could have implications for the prediction of future earnings. A forecast with characteristics that improves ability of investors to predict future earnings should result in stock prices that better predict future earnings, and results in a higher FERC. We follow Gelb and Zarowin (2002) , Tucker and Zarowin (2006) and Choi and et al(2008)in Our empirical tests, which use 347 firm/year observations from 2006 to 2011. Our empirical findings showed management forecasts affect the association between returns and future earnings, if management forecasts are more frequent and precise. Moreover, we extend models further with control variables such as firm size, growth and profitable to the control for possible correlated omitted variables. Our empirical findings showed that management forecasts affect the association between returns and future earnings if management forecasts are more frequent and precise. Forecasts with the
format	article
author	Ali Rahmani Nazanin Bashiri Manesh Seyedeh Smaneh Shahrokhi
author_facet	Ali Rahmani Nazanin Bashiri Manesh Seyedeh Smaneh Shahrokhi
author_sort	Ali Rahmani
title	Effects of Management Earnings Forecasts on Future earnings response coefficient
title_short	Effects of Management Earnings Forecasts on Future earnings response coefficient
title_full	Effects of Management Earnings Forecasts on Future earnings response coefficient
title_fullStr	Effects of Management Earnings Forecasts on Future earnings response coefficient
title_full_unstemmed	Effects of Management Earnings Forecasts on Future earnings response coefficient
title_sort	effects of management earnings forecasts on future earnings response coefficient
publisher	Shahid Bahonar University of Kerman
publishDate	2012
url	https://doaj.org/article/070e5f8b91524b47a721f08fdf040eb6
work_keys_str_mv	AT alirahmani effectsofmanagementearningsforecastsonfutureearningsresponsecoefficient AT nazaninbashirimanesh effectsofmanagementearningsforecastsonfutureearningsresponsecoefficient AT seyedehsmanehshahrokhi effectsofmanagementearningsforecastsonfutureearningsresponsecoefficient
_version_	1718444630294396928

Effects of Management Earnings Forecasts on Future earnings response coefficient

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