The Role Study of Earnings Quality at the Financial Forecasts Accuracy in the Companies Listed Tehran Stock Exchange

Hamid Ravanpak Nodezh, Ali Amiri and Fatemeh Asadi Kordshouli

International Journal of Academic Research in Business and Social Sciences, 2015, vol. 5, issue 7, 260-288

Abstract: One of the items in the financial statements to be considered as a measure of the ability of the profitability of business units, "reporting interest" is. The primary objective of financial reporting is to provide information on the performance of business units through the measurement of income and its components is obtained. The accuracy of financial forecasts One as a major objective of financial reporting Because important information for users inside and outside the organization provides. Accounting income and its components, including information which is when the decision is taken by the people. The purpose of this study was to investigate the relationship between earnings quality an accuracy of financial Forecasts in the Tehran Stock Exchange. In order to achieve the objectives of the study, 25 active industry over a period of 5 years (2009-2013) we choose. Then, using Cochran formula sample of 50 companies was selected. Also for the accuracy of the forecast financial variables Pearson correlation and regression analysis was used to combine data. The results of this study can be explained that by increasing earnings quality, the Power accuracy of prediction of financial variables, especially cash flows resulting from operational activities increased. Therefore, the quality of earnings as a significant factor in decision-making and judgment in selecting the most appropriate method of financing and the accuracy of financial forecasts in order to maximize shareholder wealth should be considered.Classification-JEL:

Keywords: Earnings Quality; Financing; Anticipated Financial Variables; Financial Reporting (search for similar items in EconPapers)
Date: 2015
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