Volume 19, Issue 3 (9-2024)
J. Mon. Ec. 2024, 19(3): 275-295 |
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Dadar O, Nouri.Khaneghah A. Concentration and Earnings Forecast Accuracy with Regard to the Role of Financial Reporting Quality. J. Mon. Ec. 2024; 19 (3) : 1
URL: http://jme.mbri.ac.ir/article-1-694-en.html
URL: http://jme.mbri.ac.ir/article-1-694-en.html
1- Assistant Professor, Department of Finance .ST.C, Islamic Azad University, Tehran, Iran
2- Master of financial management, Islamic Azad University, Tehran, Iran
2- Master of financial management, Islamic Azad University, Tehran, Iran
Abstract: (1199 Views)
Identifying the key determinants influencing the quality and accuracy of earnings forecasts is of critical importance. Existing literature has established a significant association between market concentration and earnings forecast accuracy; however, the precise mechanisms through which concentration affects forecast accuracy remain underexplored. This study examines the relationship between market concentration and earnings forecast accuracy, with particular emphasis on the role of financial reporting quality.
The data for this research is derived from the financial statements of 164 companies from 2012 to 2021. A panel data analysis was conducted to test the hypotheses.
The results indicate a significant negative relationship between concentration indicators (lower competition) and the accuracy of earnings forecasts. Furthermore, financial reporting quality has a significant positive relationship with forecast accuracy. Although the moderating role of financial reporting quality is confirmed in highly concentrated industries (with less competition), it does not offset or reverse the negative impact of market concentration on earnings forecast accuracy.
The data for this research is derived from the financial statements of 164 companies from 2012 to 2021. A panel data analysis was conducted to test the hypotheses.
The results indicate a significant negative relationship between concentration indicators (lower competition) and the accuracy of earnings forecasts. Furthermore, financial reporting quality has a significant positive relationship with forecast accuracy. Although the moderating role of financial reporting quality is confirmed in highly concentrated industries (with less competition), it does not offset or reverse the negative impact of market concentration on earnings forecast accuracy.
Article number: 1
Type of Study: Original Research - Theoric |
Subject:
Monetary Economics
Received: 29 Apr 2025 | Accepted: 5 Jun 2025 | Published: 1 Jul 2025
Received: 29 Apr 2025 | Accepted: 5 Jun 2025 | Published: 1 Jul 2025
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