Relationship between Accuracy of Managers’ Earnings Forecasts and Senior Managers’ Turning

The predictions provided by the executives about company’s future profitability contain potentially valuable concepts that help investors to make optimal decisions. Like any other information, the value of this prediction depends on its accuracy and credibility in investors’ point of view. The main...

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Autores principales:	Zohreh Hajiha, Hasan Chenari Boket
Formato:	article
Lenguaje:	FA
Publicado:	Shahid Bahonar University of Kerman 2015
Materias:	earnings forecast accuracy profitability senior managers turning Accounting. Bookkeeping HF5601-5689
Acceso en línea:	https://doaj.org/article/ee14114e19f348ac93cdf19b003ce205
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spelling	oai:doaj.org-article:ee14114e19f348ac93cdf19b003ce2052021-11-04T19:47:45ZRelationship between Accuracy of Managers’ Earnings Forecasts and Senior Managers’ Turning2008-89142476-292X10.22103/jak.2015.967https://doaj.org/article/ee14114e19f348ac93cdf19b003ce2052015-06-01T00:00:00Zhttps://jak.uk.ac.ir/article_967_de7a433ce9fae23b4123f553e54ac0dc.pdfhttps://doaj.org/toc/2008-8914https://doaj.org/toc/2476-292XThe predictions provided by the executives about company’s future profitability contain potentially valuable concepts that help investors to make optimal decisions. Like any other information, the value of this prediction depends on its accuracy and credibility in investors’ point of view. The main objective of this study was to investigate the relationship between the accuracy of managers’ earnings forecasts and senior managers’ turning. In theories, it is expected that shareholders support the managers that have more accurate and informative predictions. Having this objective, the data of 81 firms for a 5-year-period, were collected. A multivariate panel regression model is used to test the research hypotheses. The results showed that there exists a negative significant relationship between the accuracy of managers’ earnings forecasts and senior managers turning. In other words, in the Iranian companies, managers with more realistic and accurate predictions for future profit, were considered able managers and were accepted to hold their managing positions by investors. In the second hypothesis, the companies divided into two groups of firms with good performance and firms with poor performance. The findings from testing the hypothesis indicated that in the firms with poor performance, there was a positive and stronger relationship between the accuracy in prediction of absolute performance by the managers and changing director managers, compared with the firms with good performance. In other words, when companies’ performance is satisfactory, supporting the managers with less accurate earnings forecasts could be expected more.Zohreh HajihaHasan Chenari BoketShahid Bahonar University of Kermanarticleearnings forecast accuracyprofitabilitysenior managers turningAccounting. BookkeepingHF5601-5689FAمجله دانش حسابداری, Vol 6, Iss 20, Pp 147-169 (2015)
institution	DOAJ
collection	DOAJ
language	FA
topic	earnings forecast accuracy profitability senior managers turning Accounting. Bookkeeping HF5601-5689
spellingShingle	earnings forecast accuracy profitability senior managers turning Accounting. Bookkeeping HF5601-5689 Zohreh Hajiha Hasan Chenari Boket Relationship between Accuracy of Managers’ Earnings Forecasts and Senior Managers’ Turning
description	The predictions provided by the executives about company’s future profitability contain potentially valuable concepts that help investors to make optimal decisions. Like any other information, the value of this prediction depends on its accuracy and credibility in investors’ point of view. The main objective of this study was to investigate the relationship between the accuracy of managers’ earnings forecasts and senior managers’ turning. In theories, it is expected that shareholders support the managers that have more accurate and informative predictions. Having this objective, the data of 81 firms for a 5-year-period, were collected. A multivariate panel regression model is used to test the research hypotheses. The results showed that there exists a negative significant relationship between the accuracy of managers’ earnings forecasts and senior managers turning. In other words, in the Iranian companies, managers with more realistic and accurate predictions for future profit, were considered able managers and were accepted to hold their managing positions by investors. In the second hypothesis, the companies divided into two groups of firms with good performance and firms with poor performance. The findings from testing the hypothesis indicated that in the firms with poor performance, there was a positive and stronger relationship between the accuracy in prediction of absolute performance by the managers and changing director managers, compared with the firms with good performance. In other words, when companies’ performance is satisfactory, supporting the managers with less accurate earnings forecasts could be expected more.
format	article
author	Zohreh Hajiha Hasan Chenari Boket
author_facet	Zohreh Hajiha Hasan Chenari Boket
author_sort	Zohreh Hajiha
title	Relationship between Accuracy of Managers’ Earnings Forecasts and Senior Managers’ Turning
title_short	Relationship between Accuracy of Managers’ Earnings Forecasts and Senior Managers’ Turning
title_full	Relationship between Accuracy of Managers’ Earnings Forecasts and Senior Managers’ Turning
title_fullStr	Relationship between Accuracy of Managers’ Earnings Forecasts and Senior Managers’ Turning
title_full_unstemmed	Relationship between Accuracy of Managers’ Earnings Forecasts and Senior Managers’ Turning
title_sort	relationship between accuracy of managers’ earnings forecasts and senior managers’ turning
publisher	Shahid Bahonar University of Kerman
publishDate	2015
url	https://doaj.org/article/ee14114e19f348ac93cdf19b003ce205
work_keys_str_mv	AT zohrehhajiha relationshipbetweenaccuracyofmanagersearningsforecastsandseniormanagersturning AT hasanchenariboket relationshipbetweenaccuracyofmanagersearningsforecastsandseniormanagersturning
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Relationship between Accuracy of Managers’ Earnings Forecasts and Senior Managers’ Turning

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