Journal of Iranian Accounting Review

Journal of Iranian Accounting Review

The Studing the Aggressive Initial Forecasts Effect on the Relationship between Management Forecast Error and Executive Cash Compensation

Document Type : Original Article

Author
Mehdi Meshki Miavaghi
Associate Professor of Finance, Payame Noor University, Rasht, Iran
10.22055/jiar.2016.12737
Abstract
Investigating the role of aggressive initial forecast on the relationship between management forecast error (MFE) and executive cash compensation is the main target of this study. The study period covered the years between 1389 and 1393 and the statistical sample of the study included 125 companies listed in Tehran Stock Exchange (TSE). We used Panel-Data Regression and EGLS method to estimate the model parameters. The results of testing the hypotheses of the study for each of the five years and the pooled sample indicate existence of a positive and meaningful relationship between the two factors of management earning forecast error and executive cash compensation. Also, the positive relationship was observed between the management earning forecast error and executive cash compensation is strengthened while the current realized earning exceeds aggressive initial forecast.
Keywords
Initial forecast error
Management forecast error
Executive cash compensation
Journal of Iranian Accounting Review
Volume 3, Issue 10
Spring 2016
Pages 101-116