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Management Science Letters

ISSN 1923-9343 (Online) - ISSN 1923-9335 (Print)
Quarterly Publication
Volume 5 Issue 7 pp. 679-684 , 2015

The impact of economic fluctuations on earnings forecast Pages 679-684 Right click to download the paper Download PDF

Authors: Ata Molodpoor, Roya Darabi

DOI: 10.5267/j.msl.2015.5.005

Keywords: Earnings forecast, Growth domestic product, Tehran Stock Exchange

Abstract: Previous studies in the area of earnings forecasts hold a common characteristic, they make no distinction as to the economic cycle when evaluating voluntary earnings disclosures. This paper presents an empirical investigation to study the relationship between actual as well as forecasted earnings and growth domestic product during the economic growth and recession on Tehran Stock Exchange. Using the information of 60 firms over the period of 2007-2012, the study has determined that there was a positive and meaningful relationship between earnings forecast and growth domestic product during economic growth. In addition, the study has determined a meaningful relationship between actual earnings and growth domestic product during the recession.

How to cite this paper
Molodpoor, A & Darabi, R. (2015). The impact of economic fluctuations on earnings forecast.Management Science Letters , 5(7), 679-684.

Refrences
Anilowski, C., M. Feng, & D. Skinner (2010). Does earnings guidance affect market returns?. The Journal of Accounting and Economics, (44), 36-63.

Box, G. E., & Cox, D. R. (1964). An analysis of transformations. Journal of the Royal Statistical Society. Series B (Methodological), 211-252.

Campello, M., Graham, J. R., & Harvey, C. R. (2010). The real effects of financial constraints: Evidence from a financial crisis. Journal of Financial Economics, 97(3), 470-487.

Clement, M., Frankel, R., & Miller, J. (2003). Confirming management earnings forecasts, earnings uncertainty, and stock returns. Journal of Accounting Research, 41(4), 653-679.

Haidar, J. I. (2012). Sovereign credit risk in the euro zone. World Economics,13(1), 123-136.

Kuo, J. M., Ning, L., & Song, X. (2014). The real and accrual-based earnings management behaviors: Evidence from the split share structure reform in China. The International Journal of Accounting, 49(1), 101-136.

Miller, G. (2009). Should managers provide forecasts of earnings? Journal of Accounting Research, 40(1), 173-204.

Stunda, R. A. (2013). The impact of economic fluctuations on earnings forecasts. Global Journal of Business Research, 5(2), 55-64.

Weeks, J. (2009). The impact of the global financial crisis on the economy of Sierra Leone. International Policy Centre for Inclusive Growth, 18, 138-152.
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Journal: Management Science Letters | Year: 2015 | Volume: 5 | Issue: 7 | Views: 1927 | Reviews: 0

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