The purpose of this study is to examine managers’ earnings forecasting behavior in pre and post-periods around financial restatements. Following restatements, two conflicting incentives including “the reputation repair” and “risk avoidance by manipulating forecast bias after restatements” could be raised. In order to examine the behavior of managers in pre and post-periods around restatements, quasi-experimental research design and “Interrupted Time Series Design with Comparison Group” defining test and control groups consist of Tehran stock exchange companies (65 companies) between 2007- 2013 is used. Results show that there is no significant difference between earning forecast optimistic biases at post-restatement periods in test group versus control group. Rejecting the hypothesis suggested there is significant difference in managers’ earnings forecasting behavior between test group and control group following restatements, it is inferred that other factors beyond restatements could impact managers’ earnings forecasting behavior in test group companies.
mojtahed, V., Hayati, N., Parsaei, M., & Gol Mohammadi, M. (2016). Financial Restatements and managers’ earnings forecasting behavior. Accounting and Auditing Research, 8(29), 4-21. doi: 10.22034/iaar.2019.99187
MLA
vida mojtahed; Nahaleh Hayati; Mona Parsaei; Maryam Gol Mohammadi. "Financial Restatements and managers’ earnings forecasting behavior". Accounting and Auditing Research, 8, 29, 2016, 4-21. doi: 10.22034/iaar.2019.99187
HARVARD
mojtahed, V., Hayati, N., Parsaei, M., Gol Mohammadi, M. (2016). 'Financial Restatements and managers’ earnings forecasting behavior', Accounting and Auditing Research, 8(29), pp. 4-21. doi: 10.22034/iaar.2019.99187
VANCOUVER
mojtahed, V., Hayati, N., Parsaei, M., Gol Mohammadi, M. Financial Restatements and managers’ earnings forecasting behavior. Accounting and Auditing Research, 2016; 8(29): 4-21. doi: 10.22034/iaar.2019.99187
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