The effect of earnings volatility on profit forecast error with an emphasis on income smoothing
Journal Title: International Research Journal of Applied and Basic Sciences - Year 2015, Vol 9, Issue 12
Abstract
Profit is one of the major items of the financial statements, which drew the attention of the users of financial statements. Information provided by a company and thus profit is based on past events, but investors need information about the firm's future. Managements of commercial units having the resources offer reliable forecasts and increase financial markets efficiency by public release of these forecasts. This paper examines the impact of earnings volatility on profit. Accordingly, the effect of volatility on profit forecast error with an emphasis on income soothing during 2009 to 2013 based on a sample consisting of 13o companies listed in Tehran Stock Exchange was investigated. Results indicate that the effect of earnings volatility on companies’ profit forecast suggest that profit forecast error is significantly different among smoother and non-smoother companies.
Authors and Affiliations
Mehdi Soheyli Sarv| Master of Accounting, Department of Accounting, Hamedan Branch, Islamic Azad University, Hamedan, Iran., Mohammad Ghorban Mehri| PhD of Accounting, Department of Accounting, Hamedan Branch, Islamic Azad University, Hamedan, Iran., Mohammad Reza Karimi Pooya| PhD of Accounting, Department of Accounting, Hamedan Branch, Islamic Azad University, Hamedan, Iran.
Keywords
Related Articles
- EP ID EP7220
- DOI -
- Views 390
- Downloads 26
Common Interest Spheres of the Iranian-European Relations
The recent history and potential of the existing relations between the two sides have been analyzed in this research paper on the Iran-EU cooperation and common areas of interest. The main directions of the economic, cul...
A new approach for efficient energy management for data centers
This research investigates energy management problems in data center. In the recent years, with growing and expanding the computational demands, there is enormous pressure for data center. Therefore, this subject makes s...
Investigating the role of organizational commitment arising from the emotional relationship of the employees in creating loyalty (Case study: Institute of Standards and Industrial Research of Iran)
Adjusting the affective and emotional relationship with the subjects is a complicated issue and one of the internal concerns of the managers. The employees who have a relative awareness and stability are inclined to expa...
Factors influencing the development of strategies for tourism and natural attractions _ Kish Free Zone with an emphasis on sports, identifying barriers and providing solutions
The tourism industry has long been of interest to mankind, today is a special role in the world economy. In addition, the industry plays an important role of cultural interaction, dialogue of civilizations, establishing...
Contemporary theories of Motivation in Organizational Leadership and Behavior
Humans are mainly different from each other. Their demands are not equal and their values, norms and beliefs are also different from each other. Therefore, we should look at the people around us such that everyone has so...