Explaining the Relationship Between Sticky of Expenses with Prediction Error of Profit in Tehran Stock Exchange
Journal Title: Advances in Mathematical Finance and Applications - Year 2016, Vol 1, Issue 1
Abstract
One of the basic assumptions of management accounting illustrate that costs changes has a significance Relationship with increasing and decreasing in the level of activity, recently after being raised of sticky costs issue by Anderson and his colleagues this assumption was discussed. It means Increases in costs by increasing the more activity level of reduction in costs is exchange for the reduction in the level of activity. Anderson et al (2003) changed the expression of Cost behavior to sticky costs. The Subject profit forecast error is one of the issues that can affect investment decisions to hold or transfer of shares, because purchase of shares of the new company's stock is riskier process than other companies; Because of its lack of trading Background, historical information related to their is low. Accordingly, in prediction two fundamental goals follow: The first one obviously is the proper planning and second one is Familiarity and deployment of predictive techniques using predictive techniques for decision making and problem solving process. The aim of this study was to investigate the relationship between forecast error of earnings and sticky cost in Tehran Stock Exchange. To achieve this aim, a main hypothesis and sub-hypothesis has been proposed, and to test hypotheses data 108 firms listed companies in Tehran Stock Exchange using systematic sampling purposefully selected, and data of the period between 2007 to 2013 was used for statistical analysis. Finally, the results indicate that There is an inverse relationship between sticky costs and forecast error of earnings, and also between sticky cost of goods sold and sticky costs of sales.
Authors and Affiliations
Reza Gholami Jamkarani, Ali Lalbar
Keywords
Related Articles
- EP ID EP512483
- DOI 10.22034/AMFA.2016.526240
- Views 53
- Downloads 0
Investigating the Impact of the Financial Crisis on Conservative Accounting and Transparency of Banking Information
The phenomenon of the financial crisis is not a new phenomenon around the world. The structure of an economy or a set of economies may face a financial crisis. In fact, it is deformation, dimensions, causes and roots of...
Designing Native Decision-Making Model for Selecting Venture Capital Investment in Emerging Companies
Venture capital companies play an important role in the economy of countries and greatly influences economic and employment growth. VC is the provision of capital for companies and entrepreneurs that is prone to leaping...
Forecasting Stock Trend by Data Mining Algorithm
Stock trend forecasting is a one of the main factors in choosing the best investment, hence prediction and comparison of different firms’ stock trend is one method for improving investment process. Stockholders need info...
Studying the Effects of Related Factors to Risk on Shareholders’ Equity Cost by Considering Earnings Quality for Accepted Companies in Tehran Stock Exchange
cost by considering earnings quality for accepted companies in Tehran Stock Exchange. This survey investigates a population of 76 companies during the time period of 2009-2014. The results show that under high earnings q...
Assessment of Transparency Impact of Accounting Information on the Cost of the Audit for each Type of Industry
One of the main instruments of accountability in economic activities is auditing. But despite the extent of audit work, determining the fees for this service in our country is not based on a scientific model and reasonab...