The Relationship between Management Earnings Forecast Errors and Accruals

Management earnings forecast is a kind of mandatory disclosure in Iran. A large body of literature on the capital market has emphasized the importance of this forecast. Earnings forecasts influence stock prices resulting in direct market reactions. Accruals represent a key aspect of mandatory report...

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Autores principales:	Seyed Ahmad Khalifeh Soltani, Mahnaz Molanazari, Sajad Delpak
Formato:	article
Lenguaje:	FA
Publicado:	Shahid Bahonar University of Kerman 2010
Materias:	management earnings forecasts accruals mandatory disclosure Accounting. Bookkeeping HF5601-5689
Acceso en línea:	https://doaj.org/article/1d1a2337adff47c8ad6c68ab212b0be5
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spelling	oai:doaj.org-article:1d1a2337adff47c8ad6c68ab212b0be52021-11-04T19:40:23ZThe Relationship between Management Earnings Forecast Errors and Accruals2008-89142476-292X10.22103/jak.2010.40https://doaj.org/article/1d1a2337adff47c8ad6c68ab212b0be52010-11-01T00:00:00Zhttps://jak.uk.ac.ir/article_40_151950efbcbb5ca62db9e1f61757de8e.pdfhttps://doaj.org/toc/2008-8914https://doaj.org/toc/2476-292XManagement earnings forecast is a kind of mandatory disclosure in Iran. A large body of literature on the capital market has emphasized the importance of this forecast. Earnings forecasts influence stock prices resulting in direct market reactions. Accruals represent a key aspect of mandatory reporting. Basically, the environment where the firms are operating in is volatile due to business changes. Therefore, managers’ misassessments have made them unavoidably commit some common errors in assessing their firms’ business prospects. The objective of this study is to examine the association between errors in management forecasts of subsequent year earnings and current year accruals. To do this, we examined the earnings forecasts of listed companies on Tehran Stock Exchange (TSE) during 2005-2008. We tested the hypotheses by using Panel Data Regression and Analysis Multivariate Regression. The results show a positive association between management earnings forecasts and accruals. This positive association is stronger for firms operating in more uncertain business environment.Seyed Ahmad Khalifeh SoltaniMahnaz MolanazariSajad DelpakShahid Bahonar University of Kermanarticlemanagement earnings forecastsaccrualsmandatory disclosureAccounting. BookkeepingHF5601-5689FAمجله دانش حسابداری, Vol 1, Iss 3, Pp 59-76 (2010)
institution	DOAJ
collection	DOAJ
language	FA
topic	management earnings forecasts accruals mandatory disclosure Accounting. Bookkeeping HF5601-5689
spellingShingle	management earnings forecasts accruals mandatory disclosure Accounting. Bookkeeping HF5601-5689 Seyed Ahmad Khalifeh Soltani Mahnaz Molanazari Sajad Delpak The Relationship between Management Earnings Forecast Errors and Accruals
description	Management earnings forecast is a kind of mandatory disclosure in Iran. A large body of literature on the capital market has emphasized the importance of this forecast. Earnings forecasts influence stock prices resulting in direct market reactions. Accruals represent a key aspect of mandatory reporting. Basically, the environment where the firms are operating in is volatile due to business changes. Therefore, managers’ misassessments have made them unavoidably commit some common errors in assessing their firms’ business prospects. The objective of this study is to examine the association between errors in management forecasts of subsequent year earnings and current year accruals. To do this, we examined the earnings forecasts of listed companies on Tehran Stock Exchange (TSE) during 2005-2008. We tested the hypotheses by using Panel Data Regression and Analysis Multivariate Regression. The results show a positive association between management earnings forecasts and accruals. This positive association is stronger for firms operating in more uncertain business environment.
format	article
author	Seyed Ahmad Khalifeh Soltani Mahnaz Molanazari Sajad Delpak
author_facet	Seyed Ahmad Khalifeh Soltani Mahnaz Molanazari Sajad Delpak
author_sort	Seyed Ahmad Khalifeh Soltani
title	The Relationship between Management Earnings Forecast Errors and Accruals
title_short	The Relationship between Management Earnings Forecast Errors and Accruals
title_full	The Relationship between Management Earnings Forecast Errors and Accruals
title_fullStr	The Relationship between Management Earnings Forecast Errors and Accruals
title_full_unstemmed	The Relationship between Management Earnings Forecast Errors and Accruals
title_sort	relationship between management earnings forecast errors and accruals
publisher	Shahid Bahonar University of Kerman
publishDate	2010
url	https://doaj.org/article/1d1a2337adff47c8ad6c68ab212b0be5
work_keys_str_mv	AT seyedahmadkhalifehsoltani therelationshipbetweenmanagementearningsforecasterrorsandaccruals AT mahnazmolanazari therelationshipbetweenmanagementearningsforecasterrorsandaccruals AT sajaddelpak therelationshipbetweenmanagementearningsforecasterrorsandaccruals AT seyedahmadkhalifehsoltani relationshipbetweenmanagementearningsforecasterrorsandaccruals AT mahnazmolanazari relationshipbetweenmanagementearningsforecasterrorsandaccruals AT sajaddelpak relationshipbetweenmanagementearningsforecasterrorsandaccruals
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The Relationship between Management Earnings Forecast Errors and Accruals

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