Yazdan Marjanian; Farhad Shahveisi; Farzad Eivani; Azad Khanzadi
Abstract
The purpose of this study is to investigate the value relationship between good and bad news of management earnings forecasting with emphasis on impairment in management earnings forecasting. In this regard, to test the research hypotheses, data from 153 companies listed in Tehran Stock Exchange during ...
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The purpose of this study is to investigate the value relationship between good and bad news of management earnings forecasting with emphasis on impairment in management earnings forecasting. In this regard, to test the research hypotheses, data from 153 companies listed in Tehran Stock Exchange during the period 2012-2018 were used. The Results according to Generalized Least Squares method show that bad news earnings management predictions are more predictive than first and last earnings management forecasts. The results also show that good news Earnings management forecast First and last Earnings management forecast have higher disclosure noises in earnings forecasts. Finally, the results showed that, There is a significant difference between the stock price response to the last earnings forecasted and the deviations from good news and bad news management earnings forecasting, But there is no statistically significant difference between the stock price response to the first earnings forecasted and the deviations from good news and bad news earnings management forecasting.
Farshid Kheirallahi; Eshagh Behshoor; Farzad Eivani
Volume 11, Issue 44 , March 2015, , Pages 145-161
Abstract
Decreasing interest conflicts between stockholders and executives is thecorporate governance’s role and this is accentuated when managers perceivemotivations to deviate from the advantage of stockholders. Corporategovernance is likely to diminish profit management while improving theinvestors’ ...
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Decreasing interest conflicts between stockholders and executives is thecorporate governance’s role and this is accentuated when managers perceivemotivations to deviate from the advantage of stockholders. Corporategovernance is likely to diminish profit management while improving theinvestors’ understanding of cash maintenance. This study aims atrecognizing relevance among real profit management and corporategovernance. To measure profit management, Recovery models (2006) andJenni (2010) and for measuring the relevance between cash maintenance andprofit management, modified models of Opler (1999) and Phama and Fringe(1998) have been deployed in this study. Percentage of non-obligatedmembers of executive board (executive board independence) has beenutilized as the substantial feature of corporate governance. As for testing thehypotheses, multi-variable linear regression model and integratedgeneralized least squares method were used. Considering the limitationsimposed in selection, statistical sampling of the study includes 90 acceptedcompanies in Tehran Stock Exchange that have undergone research between2008 and 2012. The findings indicate that there is a meaningful positiverelevance between real profit management and cash maintenance. Investorsdecrease cash maintenance in companies with high real profit managementand compared to businesses with strong corporate governance, weaker onespossess less evaluations of cash maintenance among those which performprofit management in its high levels.
