摘要：The present study undertakes to evaluate factors affecting management of earnings forecast error. Accordingly, two hypotheses are projected to examine the relationship between earnings forecast error with abnormal returns and systematic risk. To control effects of other factors, some control variables are used, including firm size, profitability, leverage, book value to market value, and Altman's financial crisis indicators. In order to test hypotheses, 100 companies listed at Tehran Stock Exchange during 2006-2012 are selected using screening method. Variables are analyzed using static consolidated data and generalized least squares models. Results indicate a linear positive and significant relationship between earnings forecast error and abnormal returns. However, no linear relationship was observed for earnings forecast error and systematic risk.
