Investigating the effect of rounding and revision in predicting earnings per share on investors' attention
Journal Title: Advances in Mathematical Finance and Applications - Year 2019, Vol 4, Issue 1
Abstract
Because in the theory of economics, the value of a company is based on the current value of future cash flows and profit is used as a substitute for cash flows, profit forecasting is of particular importance. In the research, the effect of rounding and revision in predicting earnings per share on the investors' attention in Iran has been investigated. After designing the investors' attention assessment indexes, the transaction information was collected from the Stock Exchange in the five-year period of 2011-2015. The statistical sample consists of 120 companies selected by systematic elimination method and totally obtained 600 year-firm. In this research, linear regression and correlation were used to investigate the hypotheses of the research and Eviews software was used to analyze the data and test the hypotheses. What can be said in the summing up and conclusion of the test of research hypotheses is that predicting the earning per share influences investors 'attention, as well as the revision of the earnings per share influences the investors' attention. On the other hand, research studies show that the rounding in interaction with the revision in predicting earnings per share can also affect the investors' attention.
Authors and Affiliations
Ayat Bijani, Iraj Nouri
Keywords
Related Articles
- EP ID EP475033
- DOI 10.22034/AMFA.2019.545146.1079
- Views 34
- Downloads 0
Fair Value Accounting for Liabilities and Own Credit Risk
Changes in credit risk may arise when either the value or the risk of corporate assets changes. Changes in the equity value associated with the changes in the asset value and changes in asset risk can be characterized in...
Study and Research on the Six-Year Process of Bitcoin Price and Return
The purpose of this study, is create a challenge and discussion concerning the existence of information about the Bitcoin price and return, which suggests the relationship of information and the strong performance it. Th...
Opaque Information, Deviation from Target Leverage and Speed of Adjustment
Information opacity leads to information asymmetry. In this situation, in providing their own financial needs, firms face limitations and inevitably provide their financial needs from the debt market by signalling privat...
Developing a Paradigm for Fair Valuation in Tehran Stock Exchange
The concept of value is of great importance for investors. The goal of different groups of investors is always to maximize the value of their capital. The aim of this research is developing factors effective on securitie...
ANN-DEA Approach of Corporate Diversification and Efficiency in Bursa Malaysia
There is little consensus on the corporate diversification-efficiency relationship in the diversification literature. According to the corporate diversification, firms have a tendency to get more market share with divers...