The Relation between Characteristics of Predicted Earnings per Share by Management and Risk and Firm Value in Terms of Future Decision-Making
Subject Areas : Financial Knowledge of Securities Analysisفرزانه حیدرپور 1 , زیبا خواجه محمود 2
1 - مسئول مکاتبات
2 - ندارد
Keywords: Providence, Prediction of Earning Per Shar, Firm Value, Firm Risk, Accuracy and Validity of Predi, systematic risk,
Abstract :
AbstractThe firms that have provided a clear picture of their future are more widely acceptedin the market. One of the ways to draw this picture is exposing the prediction of earningper share. This broadcast makes the capital market sure that firm provides informationimpartially.This study tries to examine the relation between the predicted earning by managementand the firm value and risk. Sampling is done by systematic elimination method andregression analysis was used for testing hypothesis. Sample consists of 178 firms whichare listed in Tehran Stock Exchange and their data were statistically analyzed during theyears of 2007 to 2011; therefore, the sample size in this study is 1068. The results oflogistic regression has shown that the firm reported prediction of earning per share ispotentially considered by capital market , and the activists in this market would use thesefigures to decide in providence model for investing.