Journal Name:
- International Journal of Innovation and Applied Studies
Author Name | University of Author |
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Abstract (2. Language):
In the present study, we deal with the survey of the relationship between the management forecasted profits and
disclosure quality with the market surprise in Tehran’s securities market. Since managers, analysts and investors pay a
greater attention to the companies’ reported profit in a way that they use it to evaluate the company’s performance and also
because the decision-making for purchasing, maintain, or the sale of the stock shares is of a great importance for the
investors, and from among other evidences and information, the capability to forecast the stock return rate has a greater
influence on such decision-making, the aim of the present study is the survey of the relationship between the management
forecasted profits and the disclosure quality with market surprise in the companies accepted in Tehran’s Securities Exchange.
To reach the aforementioned objective three hypotheses are being proposed in which it has been dealt with the profit
forecast accuracy, getting surprised with the management announced profit and systematic risk with stock price response. To
test the study hypotheses, the data from 116 companies accepted in Tehran’s Securities Exchange was selected based on the
goal-oriented systematic sampling method and the data from the time span from 2001 to 2011 was used to statistically test
the hypotheses in the form of multiple-regression and the data panel was used in two softwares, namely SPSS17 and
Eviews7.
The obtained results are suggestive of a significant and reverse relationship between the profit forecast accuracy and the
stock price response and there is a direct relationship between getting surprised from the management announced profit
and the systematic risk with stock price response.
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