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 424
- Downloads 26
The Effect of Power Point on Reading Comprehension Improvement among High school students: A case Study in the City of Shoush
The use of Technology has had an enormous impact on the world of education. The use of technology has many advantages for the field of education and particularly for foreign language education. PowerPoint is an effective...
The Verification of Freedom of Speech and Opinion Right in Islamic Republic of Iran's constitution with considering International Documents of Human Rights
Freedom of Speech and opinion is the constitutional Right of Human beings which have nearly been reflected in constitution of all countries, and for this reason it has been contained constitution, because of the governme...
The study and rating of influencing factors on Competitive Advantages of car companies - case study: saipa company
The purpose of this study was to identify the relationship between the enjoyment of technical resources and advanced hardware Saipa Company with a competitive advantage. In this study, the factors affecting the competiti...
Psychological disorders among women with Primary Infertility and fertile women
This study aimed to determine prevalence and predisposing factors of psychiatric disorders among infertile in comparison to fertile women. By a descriptive- analytic study in Hazrat-e- Maryam Reproductive Center, 35 wome...
On the bond between the degree of job stress of staff and increasing efficiency in organization (case study: Tax Administration of West Azarbaijan)
The concept of stress and its impacts on organizations has been a controversial issue of managing organizational behavior where the mental pressure declines the amount of activities in organization. Considering occupatio...