The purpose of this study was to investigate the relationship between accounting flexibility and the managers' optimism in earnings forecast based on the theory of managerial discretion. The statistical sample of the research includes 129 companies from listed companies More
The purpose of this study was to investigate the relationship between accounting flexibility and the managers' optimism in earnings forecast based on the theory of managerial discretion. The statistical sample of the research includes 129 companies from listed companies in Tehran Stock Exchange between 2008 to 2016. The results of the research show that there is a direct and meaningful relationship between the amount of accounting flexibility with earnings predictive growth and predictive error by management. As firms with high accounting flexibility have a more optimistic prediction than companies with low accounting flexibility. Also, companies with higher accounting flexibility through earnings manipulation have been able to increase earnings above Forecast earnings and their earnings forecast error is positive, but firms with low accounting flexibility due to the effect Cumulative of the past accruals management has been confronted with a limitation on Manipulation of current period earnings and future periods, so the predictive error of their earnings is negative. According to the results of the research, it is suggested to investors and analysts to be attentive to managers' Opportunistic optimism When they use earnings Forecast by Managers
Manuscript profile
This article aims to investigate the effect of corporate governance on the relation between accounting information quality and correlation of company and industry growth rate for the companies listed in Tehran Stock Exchange. This research uses the variables earnings pe More
This article aims to investigate the effect of corporate governance on the relation between accounting information quality and correlation of company and industry growth rate for the companies listed in Tehran Stock Exchange. This research uses the variables earnings persistence, earnings smoothing, earnings predictability and accruals quality as proxy accounting information quality variable. Also, eight indices are used as proxy corporate governance mechanisms. the hypothesizes of the research are tested using a sample consisting of 111 of companies for a time period of 15 years from 2003 to 2016 and based on multiple variable regression model and panel data model. Eviews software were employed for calculation. The results indicate where the corporate governance is weak, then the role of the accounting information quality in investor’s decision making increases. Accounting information quality also better explains the correlation between company and industry’s growth rate where the corporate governance is weak.
Manuscript profile