Robab Shakeri; Mohammad Marfou
Abstract
In this study, the effect of business strategy on the Company's Information Environment (Information Asymmetry, stock returns Volatility, Earning Forecast Errors), is studied. Also to determine the type of companies' selected strategy (prospective or defensive), the Ittner and Larcker )1997) scoring ...
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In this study, the effect of business strategy on the Company's Information Environment (Information Asymmetry, stock returns Volatility, Earning Forecast Errors), is studied. Also to determine the type of companies' selected strategy (prospective or defensive), the Ittner and Larcker )1997) scoring system is used. For statistical analysis, multivariate regression used and control variables (firm size and financial leverage) is also used in models. The study period, is the period (2011) to (2015) and a sample of 168 companies listed on the Tehran Stock Exchange is used. The results indicate that a positive and significant relationship exists between the company's business strategy and Information Environment (Information Asymmetry, stock returns Volatility, Earning Forecast Errors) so that the more prospective business strategy, brings more information asymmetry, more stock returns Volatility and more Earning Forecast Errors
Yahya Hassas Yeganeh; Mohammad Marfou; Masoomeh Naqdi
Abstract
Earnings forecast accuracy can affect investment efficiency. We expect that an increase in earnings forecast accuracy will result in an increase in investment efficiency and a decrease in both over-investment and under-investment. The purpose of this study is to examine the relation between management ...
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Earnings forecast accuracy can affect investment efficiency. We expect that an increase in earnings forecast accuracy will result in an increase in investment efficiency and a decrease in both over-investment and under-investment. The purpose of this study is to examine the relation between management earnings forecast accuracy and investment efficiency. Following the literature, we use the deviation from the expected level of investment considering the growth opportunities, as the measure of investment efficiency. To examine the hypotheses, we identify a sample of 133 firms listed on Tehran Securities and Stock Exchange during the period of 2009-2013.Regression analysis is used to examine the hypotheses and 10 control variables (size, ROA, Tobin’s Q, sales growth, leverage, stock return, forecast horizon, stdev. Stock returns, stdev. ROA and stdev. I) are used in the regression models. Findings suggest that there is a positive relationship between earnings forecast accuracy and investment efficiency and there is a negative relationship between earnings forecast accuracy and over-investment. In case of under-investment the relation is not strong. The results of examining hypotheses indicate that an increase in earnings forecast accuracy results in an increase in investment efficiency and a decrease in over-investment. Regarding the under-investment, no strong relation was found between earnings forecast accuracy an under-investment.
F. Mehrvarz; M. Marfou
Abstract
AbstractThe present research deals with explaining the relationship betweenfinancial statements comparability and the stock price informativeness regarding the future earnings as well as explaining therole of the financial statements comparability in reflecting the firm’sspecific future earnings ...
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AbstractThe present research deals with explaining the relationship betweenfinancial statements comparability and the stock price informativeness regarding the future earnings as well as explaining therole of the financial statements comparability in reflecting the firm’sspecific future earnings data and reflecting the future earnings datarelevant to the industry in the stock price of the current period. Thetime period of this research for the 4-year has been considered fromthe beginning of 1386 till the end of 1389. However, data from 1383to 1386 and 1390 to 1392 is also used to calculate some variables. Theresearch sample consists of 85 listed firms in Tehran Stock Exchange.The multivariate regressions have been used for the statisticalanalysis. Four control variables-size, growth, loss and earningsvolatility-have been used. According to the accomplished tests there isno positive relation between the financial statements comparabilityand the stock price in formativeness. The financial statementscomparability does not contribute in reflecting the future earnings datarelevant to the industry and reflecting the firm’s specific futureearnings data in the stock price of the current period
Saber Sheri; Mohammad Marfou
Volume 5, Issue 17 , April 2007, , Pages 63-104
Abstract
There are significant differences in disclosure of information among firms. Identification of factors affecting management in formation disclosure is a useful research area and wide variety of users such as: market pol icy makers, investors and academicians could take advantage of the ...
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There are significant differences in disclosure of information among firms. Identification of factors affecting management in formation disclosure is a useful research area and wide variety of users such as: market pol icy makers, investors and academicians could take advantage of the results.
Earning forecast is important information that firms usually disclose. Corporate governance improves the performance of companies and their quality of disclosure.
This empirical research investigated the relationship between properties of management earning forecast, with two important corporate governance mechanism; outside directors and institutional investors.
Our sample is selected from listed companies in Tehran Stock Exchange (TSE) for a period of the years 2003 to 2005. The percentage of outside directors and firms aggregated common stock held by institutions are independent variables. Properties of management earnings forecasts are dependent variables. Forecast precision, forecast timeliness, forecast bias and the number of forecasts that is revised are proxies for those properties. The control variables are: size of the firm, the firm's auditor. the ratio of market to book value of the common equity, number of days between the forecast date and fiscal ending period date and good or bad news.
We established hypotheses based on the above variables and tested them by using single and Multiple Regression Analysis and Mann-Whitney U.
The result showed that; there is no significant relationship between two corporate governance mechanisms and proper ties of management earnings forecasts. The result as a whole doesn't discern any significant relationship between outside directors and in situational investors to precision, bias, timeliness of earning forecasts and revise on them.
