Examining the role of Ethical and Behavioral Characteristics of Managers on Bias in Financial Forecasts
Subject Areas :علی اسماعیل زاده 1 , REZA MAZAHERI TEHRANI 2
1 - دانشیار حسابداری دانشگاه آزاد اسلامی واحد اسلامشهر
2 - ISLAMI AZAD UNIVERSITY OF CENTERAL TEHRAN BRANCH
Keywords: Keywords: Management opportunistic behavior, bias in financial forecasts, corporate transparency and ethical and behavioral characteristics of managers.,
Abstract :
Abstract The purpose of this research is to investigate the role of ethical and behavioral characteristics of managers on bias in financial forecasts in companies admitted to the Tehran Stock Exchange. In this research, five indicators have been used to examine the moral and behavioral characteristics of managers (representative behavior of managers, short-sighted behavior of managers, authoritative behavior of managers, ability of managers and daring tax behavior on the part of management). For this purpose, data related to 155 companies for the period between 2008 and 2020 were analyzed. The regression model of the research was examined and tested using panel data method with fixed effects approach. The present research is practical in terms of its nature, correlation type and purpose. The researches showed that the representative behavior of the managers, the authoritative behavior of the management and the daring tax behavior of the management as a type of opportunistic behavior of the management, with a decrease in the level of transparency and accountability on the one hand and an increase in the level of information asymmetry on the other hand, cause an increase in bias. It is in managers' forecasts. In addition, the results confirm that, due to their higher ability, capable managers have a more consistent level of planning and higher forecasting accuracy, and they reduce bias in financial forecasts. Also, the results show that the short-sighted behavior of managers does not have a significant effect on bias in financial forecasts. ESMAEILZADEH ALI MAZAHERI TEHRANI REZA
