IDEAS home Printed from https://ideas.repec.org/a/rnd/arjevr/v4y2013i4p119-129.html
   My bibliography  Save this article

Evaluation of Management Earnings Forecast Error and Information Content of Accruals: Listed Companies in Tehran Stock Exchange

Author

Listed:
  • Mehdi Moradzadehfard

Abstract

Aim of this study is studying relation of management earnings forecast error and information content of accruals. Thus, the sample consists of 71 companies were selected for the period 2003-2011. In this study discretionary accruals is used as independent variables. The results suggest that there is a significant negative relationship between earnings management forecast error and the total discretionary accruals. These results indicate that other assumptions that management forecasts for financing through equity or debt generates a significant positive relationship between positive accruals and management earnings forecast error. In addition, through equity or debt financing outlook, there is no significant relationship between earnings forecast error and negative accruals.

Suggested Citation

  • Mehdi Moradzadehfard, 2013. "Evaluation of Management Earnings Forecast Error and Information Content of Accruals: Listed Companies in Tehran Stock Exchange," Journal of Education and Vocational Research, AMH International, vol. 4(4), pages 119-129.
  • Handle: RePEc:rnd:arjevr:v:4:y:2013:i:4:p:119-129
    DOI: 10.22610/jevr.v4i4.109
    as

    Download full text from publisher

    File URL: https://ojs.amhinternational.com/index.php/jevr/article/view/109/109
    Download Restriction: no

    File URL: https://ojs.amhinternational.com/index.php/jevr/article/view/109
    Download Restriction: no

    File URL: https://libkey.io/10.22610/jevr.v4i4.109?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Keitha Dunstan & Gerry Gallery & Thu Phuong Truong, 2011. "Public regulatory reform and management earnings forecasts in a low private litigation environment," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 51(2), pages 437-465, June.
    2. Vijay Jog & Bruce J. McConomy, 2003. "Voluntary Disclosure of Management Earnings Forecasts in IPO Prospectuses," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 30(1-2), pages 125-168.
    3. Bart Frijns & Aaron Gilbert & Alireza Tourani‐Rad, 2008. "Insider Trading, Regulation, And The Components Of The Bid–Ask Spread," Journal of Financial Research, Southern Finance Association;Southwestern Finance Association, vol. 31(3), pages 225-246, September.
    4. Kasznik, R, 1999. "On the association between voluntary disclosure and earnings management," Journal of Accounting Research, Wiley Blackwell, vol. 37(1), pages 57-81.
    5. Huang, Meng & Marsden, Alastair & Poskitt, Russell, 2009. "The impact of disclosure reform on the NZX's financial information environment," Pacific-Basin Finance Journal, Elsevier, vol. 17(4), pages 460-478, September.
    6. Lynn Rees & K. Sivaramakrishnan, 2007. "The Effect of Meeting or Beating Revenue Forecasts on the Association between Quarterly Returns and Earnings Forecast Errors," Contemporary Accounting Research, John Wiley & Sons, vol. 24(1), pages 259-290, March.
    7. Vijay Jog & Bruce J. McConomy, 2003. "Voluntary Disclosure of Management Earnings Forecasts in IPO Prospectuses," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 30(1‐2), pages 125-168, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. McGuinness, Paul B., 2016. "Voluntary profit forecast disclosures, IPO pricing revisions and after-market earnings drift," International Review of Financial Analysis, Elsevier, vol. 46(C), pages 70-83.
    2. Cormier, Denis & Martinez, Isabelle, 2006. "The association between management earnings forecasts, earnings management, and stock market valuation: Evidence from French IPOs," The International Journal of Accounting, Elsevier, vol. 41(3), pages 209-236.
    3. Anne Cazavan‐Jeny & Thomas Jeanjean, 2007. "Levels of voluntary disclosure in IPO prospectuses: an empirical analysis," Review of Accounting and Finance, Emerald Group Publishing Limited, vol. 6(2), pages 131-149, May.
    4. Haman, Janto & Chalmers, Keryn & Fang, Victor, 2017. "IPO lockups, long run returns, and growth opportunities," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 49(C), pages 184-199.
    5. Christian Nielsen & Gunnar Rimmel & Tadanori Yosano, 2015. "Outperforming markets: IC and the long-term performance of Japanese IPOs," Accounting Forum, Taylor & Francis Journals, vol. 39(2), pages 83-96, June.
    6. Thorsten Knauer & Arnt Wöhrmann, 2010. "Rahmenbedingungen, Charakteristika und Konsequenzen freiwilliger Unternehmenspublizität – State of the Art und neue Perspektiven der empirischen Forschung," Metrika: International Journal for Theoretical and Applied Statistics, Springer, vol. 21(3), pages 235-254, November.
    7. Wahyu Widarjo & Rahmawati & Bandi & Ari Kuncara Widagdo, 2020. "Underpricing and Intellectual Capital Disclosure: Evidence from Indonesia," Global Business Review, International Management Institute, vol. 21(6), pages 1325-1337, December.
    8. Georgakopoulos, Georgios & Gounopoulos, Dimitrios & Huang, Chen & Patsika, Victoria, 2022. "The impact of IFRS adoption on IPOs management earnings forecasts in Australia," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 48(C).
    9. Neil Hartnett, 2010. "The value relevance of earnings forecast disclosures: an investigation of forecast attributes and signalling in the Australian IPO context," Applied Financial Economics, Taylor & Francis Journals, vol. 20(23), pages 1819-1828.
    10. Marc Deloof & Wouter De Maeseneire & Koen Inghelbrecht, 2009. "How Do Investment Banks Value Initial Public Offerings (IPOs)?," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 36(1‐2), pages 130-160, January.
    11. Keasey, Kevin & McGuinness, Paul B., 2008. "Firm value and its relation to equity retention levels, forecast earnings disclosures and underpricing in initial public offerings in Hong Kong," International Business Review, Elsevier, vol. 17(6), pages 642-662, December.
    12. Paul B. McGuinness, 2016. "Post-IPO performance and its association with subscription cascades and issuers’ strategic-political importance," Review of Quantitative Finance and Accounting, Springer, vol. 46(2), pages 291-333, February.
    13. Tomasz Sosnowski & Anna Wawryszuk-Misztal, 2019. "Diversity on management and supervisory board and accuracy of management earnings forecasts in IPO prospectuses," Ekonomia i Prawo, Uniwersytet Mikolaja Kopernika, vol. 18(3), pages 347-363, September.
    14. Truong, Cameron, 2010. "Post earnings announcement drift and the roles of drift-enhanced factors in New Zealand," Pacific-Basin Finance Journal, Elsevier, vol. 18(2), pages 139-157, April.
    15. Nikolaev, V. & van Lent, L.A.G.M., 2005. "The Endogeneity Bias in the Relation Between Cost-of-Debt Capital and Corporate Disclosure Policy," Discussion Paper 2005-67, Tilburg University, Center for Economic Research.
    16. Lin, Z. Jun & Tian, Zhimin, 2012. "Accounting conservatism and IPO underpricing: China evidence," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 21(2), pages 127-144.
    17. Killins, Robert N., 2019. "An investigation of the short-term performance of the Canadian IPO market," Research in International Business and Finance, Elsevier, vol. 47(C), pages 102-113.
    18. Isabelle Martinez & Emmanuelle Negre, 2011. "Les déterminants de la communication volontaire des entreprises cibles d'OPA/OPE : le cas des synergies," Post-Print hal-00650551, HAL.
    19. Bikki Jaggi & Chen-lung Chin & Hsiou-wei William Lin & Picheng Lee, 2006. "Earnings forecast disclosure regulation and earnings management: evidence from Taiwan IPO firms," Review of Quantitative Finance and Accounting, Springer, vol. 26(3), pages 275-299, May.
    20. Albring, Susan & Huang, Shawn & Pereira, Raynolde & Xu, Xiaolu, 2020. "Disclosure and liquidity management: Evidence from regulation fair disclosure," Journal of Contemporary Accounting and Economics, Elsevier, vol. 16(3).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rnd:arjevr:v:4:y:2013:i:4:p:119-129. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Muhammad Tayyab (email available below). General contact details of provider: https://ojs.amhinternational.com/index.php/jevr .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.