Role of Management Earnings Forecast Error in Stock Market Efficiency with Emphasis on Earnings and Operation Earnings Components

Objective: The purpose of this research was to investigate the role of management earnings forecast errors in stock market efficiency with emphasis on operation earnings and their components in the Tehran Stock Exchange from 2009 to 2017. Method: Data was collected using document mining method, and...

Descripción completa

Guardado en:

Detalles Bibliográficos
Autores principales:	Shamsi Vahedi, Saeed Ali ahmadi (Ph.D)
Formato:	article
Lenguaje:	FA
Publicado:	Shahid Bahonar University of Kerman 2020
Materias:	management earnings forecast errors the first adjusted management earnings forecast errors market efficiency operation earnings and its components Accounting. Bookkeeping HF5601-5689
Acceso en línea:	https://doaj.org/article/9541f296f4b44b37afe2a3c45ce49c72
Etiquetas:	Agregar Etiqueta Sin Etiquetas, Sea el primero en etiquetar este registro!

id	oai:doaj.org-article:9541f296f4b44b37afe2a3c45ce49c72
record_format	dspace
spelling	oai:doaj.org-article:9541f296f4b44b37afe2a3c45ce49c722021-11-04T19:55:14ZRole of Management Earnings Forecast Error in Stock Market Efficiency with Emphasis on Earnings and Operation Earnings Components2008-89142476-292X10.22103/jak.2019.13005.2840https://doaj.org/article/9541f296f4b44b37afe2a3c45ce49c722020-01-01T00:00:00Zhttps://jak.uk.ac.ir/article_2454_67434291f2f22bd09f01521659bc785f.pdfhttps://doaj.org/toc/2008-8914https://doaj.org/toc/2476-292XObjective: The purpose of this research was to investigate the role of management earnings forecast errors in stock market efficiency with emphasis on operation earnings and their components in the Tehran Stock Exchange from 2009 to 2017. Method: Data was collected using document mining method, and the data analysis method was inferential. Panel data model and multivariate regression method were used to test the research hypotheses, using the Pethnoster test. In this study, the dependent variables are the abnormal stock returns and the first error of management forecast adjustment, and the independent variables are free cash flow and accruals. Results: The findings of this study showed that operating earnings and their components have positive effects on future abnormal returns. Also, the persistence of operating earnings and their components have negative impacts on the first adjusted management earnings forecast errors. Other results suggested that adding management earnings forecast errors to the earnings persistence model and its components have no effect on future abnormal returns. In addition, it was found that adding abnormal returns to the earnings persistence model and its components affect the error of the first adjusted management earnings forecast errors. Conclusion: In sum, the results of this study show that participants in the capital market do not consider the persistence of operating earnings and their components to be effective in their expectations, and take their effects less than real. Also, the current information from management earnings forecast errors has not changed market inefficiencies.Shamsi VahediSaeed Ali ahmadi (Ph.D)Shahid Bahonar University of Kermanarticlemanagement earnings forecast errorsthe first adjusted management earnings forecast errorsmarket efficiencyoperation earnings and its componentsAccounting. BookkeepingHF5601-5689FAمجله دانش حسابداری, Vol 10, Iss 4, Pp 1-27 (2020)
institution	DOAJ
collection	DOAJ
language	FA
topic	management earnings forecast errors the first adjusted management earnings forecast errors market efficiency operation earnings and its components Accounting. Bookkeeping HF5601-5689
spellingShingle	management earnings forecast errors the first adjusted management earnings forecast errors market efficiency operation earnings and its components Accounting. Bookkeeping HF5601-5689 Shamsi Vahedi Saeed Ali ahmadi (Ph.D) Role of Management Earnings Forecast Error in Stock Market Efficiency with Emphasis on Earnings and Operation Earnings Components
description	Objective: The purpose of this research was to investigate the role of management earnings forecast errors in stock market efficiency with emphasis on operation earnings and their components in the Tehran Stock Exchange from 2009 to 2017. Method: Data was collected using document mining method, and the data analysis method was inferential. Panel data model and multivariate regression method were used to test the research hypotheses, using the Pethnoster test. In this study, the dependent variables are the abnormal stock returns and the first error of management forecast adjustment, and the independent variables are free cash flow and accruals. Results: The findings of this study showed that operating earnings and their components have positive effects on future abnormal returns. Also, the persistence of operating earnings and their components have negative impacts on the first adjusted management earnings forecast errors. Other results suggested that adding management earnings forecast errors to the earnings persistence model and its components have no effect on future abnormal returns. In addition, it was found that adding abnormal returns to the earnings persistence model and its components affect the error of the first adjusted management earnings forecast errors. Conclusion: In sum, the results of this study show that participants in the capital market do not consider the persistence of operating earnings and their components to be effective in their expectations, and take their effects less than real. Also, the current information from management earnings forecast errors has not changed market inefficiencies.
format	article
author	Shamsi Vahedi Saeed Ali ahmadi (Ph.D)
author_facet	Shamsi Vahedi Saeed Ali ahmadi (Ph.D)
author_sort	Shamsi Vahedi
title	Role of Management Earnings Forecast Error in Stock Market Efficiency with Emphasis on Earnings and Operation Earnings Components
title_short	Role of Management Earnings Forecast Error in Stock Market Efficiency with Emphasis on Earnings and Operation Earnings Components
title_full	Role of Management Earnings Forecast Error in Stock Market Efficiency with Emphasis on Earnings and Operation Earnings Components
title_fullStr	Role of Management Earnings Forecast Error in Stock Market Efficiency with Emphasis on Earnings and Operation Earnings Components
title_full_unstemmed	Role of Management Earnings Forecast Error in Stock Market Efficiency with Emphasis on Earnings and Operation Earnings Components
title_sort	role of management earnings forecast error in stock market efficiency with emphasis on earnings and operation earnings components
publisher	Shahid Bahonar University of Kerman
publishDate	2020
url	https://doaj.org/article/9541f296f4b44b37afe2a3c45ce49c72
work_keys_str_mv	AT shamsivahedi roleofmanagementearningsforecasterrorinstockmarketefficiencywithemphasisonearningsandoperationearningscomponents AT saeedaliahmadiphd roleofmanagementearningsforecasterrorinstockmarketefficiencywithemphasisonearningsandoperationearningscomponents
_version_	1718444607242502144

Role of Management Earnings Forecast Error in Stock Market Efficiency with Emphasis on Earnings and Operation Earnings Components

Ejemplares similares