Investigate the Effect of Prediction Profit Reporting Tone on Investors' Reactions and Performance Prediction
Subject Areas : Journal of Investment Knowledge
mahmoud
toorchi
1
(1. Ph.D. Student in Accounting, Faculty of Humanities, Department of Accounting, Qaenat Branch, Islamic Azad University, Qaenat, Iran.)
Mahmoud
Lari Dashtebayaz
2
(Assistant Prof of Accounting Group, Faculty of Economic and Administrative Sciences, Ferdowsi University of Mashhad, Mashhad, Iran,)
Mohammad Reza
Razdar
3
(Assistant Prof of Accounting Group, Department of Accounting Group, Qaenat branch, Islamic Azad University, Qaenat, Iran.)
Keywords: Performance Prediction, Qualitative Disclosure, Tone Management, Investors' Reactions,
Abstract :
In recent years, the analysis of various aspects of qualitative information on financial reports is one of the important tools for decision making by investors and other capital market users. The purpose of this study, was to investigate The effect of the earnings forecast report tone on investor response and performance prediction. To investigate this issue, the present study uses 140 years- company listed companies at Tehran Stock Exchange between 2011 and 2017. In order to test the hypotheses of the research, multiple regression and logistic regression were used. The research findings suggest that earnings forecast report tone is not a suitable tool for investors and other users to predict future earnings and future cash flows (future performance). Also, no significant relationship was found between the earnings forecast report tone with some of the incremental (decreasing) criteria of managers' understanding to manage the report tone, such as renewing the presentation of profits and realizing the near real. In other words, the earnings forecast report tone does not have any effect on the perception and awareness of the investors.
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