خلاصة:
Agency problems have made it difficult to find a way to ensure the quality of financial
reporting to have accurate earning forecast. This issue has been taken into special
consideration after recent financial scandals, and regulatory authorities in various countries
of the world have taken various measures to deal with that. Corporate governance reform is
one of the measures that is taken into account in this regard. By reducing the agency
problems, the corporate governance mechanisms can reduce the earning opportunities and
thereby increase the quality of earnings. On the other hand, increased sophistication of
economic activities and variety of decisions have made it possible for managers to
manipulate balance sheet items to superficially improve their performance and receive
rewards. Surplus free cash flow is one of the factors that can influence the opportunistic
behaviors of managers. The present study investigates the effect of surplus free cash flow
and corporate governance indices on the earning predictability in companies listed in Tehran
Stock Exchange. To this end, a total of 126 companies listed in Tehran stock exchange were
investigated within a period of time ranging from 1389 to 1393. The results of this study
showed that corporate governance has a positive impact on earnings predictability, and
corporate governance has a significant positive impact on the relationship between surplus
free cash flow and earning predictability, but the surplus free cash flow has a negative effect
on the earnings predictability.
ملخص الجهاز:
, (UJMAS) 50-56 (2017) ISSN 2382-9745 Investigation of the corporate governance index moderating impact on the negative correlation between surplus free cash flow and earning prediction Mojtaba Motalebian1*and Zahra Hemmati Ardali2 1Department of Accounting, Farsan Branch, Payame Noor University, Chaharmahal va Bakhtiari, Iran 2Student of Accounting, Islamic Azad University, Shahrekord Branch-Iran Original Article: Received 11 May. 2017 Accepted 10 Aug. 2017 Published 17 Sep. 2017 ABSTRACT Agency problems have made it difficult to find a way to ensure the quality of financial reporting to have accurate earning forecast.
The present study investigates the effect of surplus free cash flow and corporate governance indices on the earning predictability in companies listed in Tehran Stock Exchange.
), attempts are made in the present study to answer the following question: Do corporate governance indicators have a moderating effect on the negative correlation between the surplus cash flow and earnings forecast?
Table 5: Final estimation of the first hypothesis model with the panel data and fixed effects of y-intercept variable coefficients SD statistic t significance level Earn 0.
000 UCT Journal of Management and Accounting Studies Vol 5 Issue 3, September 2017 Table 6: Final estimation of the third hypothesis model with panel data and fixed effects of the y-intercept variable coefficients SD statistic t significance level Earn - 0.
Investigation of the Relationship between the equity Earnings forecast by directors, risk and Company's Value with the aim of having Motalebian and Hemmati Ardali UCT Journal of Management and Accounting Studies Vol 5 Issue 3, September 2017 foresight Decision-making.