Authors : Mohammad Reza Nikbakht and Mehdi Mohammadi Fazel
Abstract: One of the most efficient ways where managers can convey their expectations to the capital market is Earnings Per Share (EPS) forecast issuance. The main purpose of this research is to investigate the effect of management forecast properties on the companies admitted to Tehran Stock Exchange. It was conducted during 7 consecutive years from 2009-2015 and the collected data from 104 of such companies was analyzed. According to the findings, precision or accuracy, type and horizon of the forecasted earning affected the future earnings response coefficient of the statistic sample companies during the research. Hence, it seems that capital market activists have the capacity to comprehend and apply EPS forecasts to investment decision-making patterns. Furthermore, the results indicate the insignificance of EPS forecast issuance frequency. Concerning this issuance frequency of the predicted EPS may not be considered as related data for the investors.
Mohammad Reza Nikbakht and Mehdi Mohammadi Fazel, 2016. Analysis of Forecasted Earning Characteristics’ Affects on Earnings Response Coefficient of Companies Listed in Tehran Stock Exchange. International Business Management, 10: 2308-2316.