A Study of the Influence of the Financial Crisis and Income Smoothing on the Earnings Forecast Accuracy by Managers of Listed Companies in Tehran Stock Exchange

Abstract

Forecasted earnings provide significant information for investment and other financial statements users. In recent years, a large number of studies have considered the forecasted earnings accuracy by management. In this research, the influence of financial crisis and income smoothing on the earning forecast accuracy by managers of listed companies in Tehran Stock Exchange is examined. To achieve the study objectives 130 companies listed in Tehran Stock Exchange have been reviewed in the five year period of 2007 to 2011. Two populations mean comparative t- student test has been used to study the accuracy of the results obtained from the hypotheses tests. Research findings show that income smoothing variable can effect on earnings forecast accuracy, but financial crisis has not been affective on earnings forecast accuracy.