Mohammad Javad Saei; Mohammad Ali Bagherpour Velashani; Seyyed Naser Mosavi Baigi
Abstract
Abstract
The purpose of this study is investigation of the effect of restated information on the prediction of earnings. The sample comprised 1603 firm-year observations for the period 2001 to 2008, which represents 70% of all companies listed in Tehran stock exchange (TSE).The T-test results indicate ...
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Abstract
The purpose of this study is investigation of the effect of restated information on the prediction of earnings. The sample comprised 1603 firm-year observations for the period 2001 to 2008, which represents 70% of all companies listed in Tehran stock exchange (TSE).The T-test results indicate that,there is a significant difference between primary and restated figures. In addition, restated information increases the ability (power) of Sloan earnings prediction modeland reduces the errors of firm’s ordering based on Shannon entropy & GRA model, which implies that restated figures are more useful than primary ones in this model of earning prediction.
The results show that the use of restated figures by users and researchers could conclude to more powerful predictions. Therefore strongly suggest that financial database software should expand to supply this kind of information.
