Public Sector Accounting and Budgeting

Public Sector Accounting and Budgeting

Modeling the relationship between disclosure quality and earnings forecast accuracy considering aarnings volatility accruals: A spatial econometric approach

Document Type : Original Article

Authors
Qassim Mahal Herez 1, 2
Parviz Piri 3
Akbar Zavari Rezaei 4
1 PhD Student, Department of Accounting, Faculty of Economics and Management, Urmia University, Urmia, Iran
2 Iraq
3 Associate Professor, Urmia University, Department of Accounting, Faculty of Economics and Management, Urmia University, Urmia, Iran
4 Assistant Professor, Department of Accounting, Faculty of Economics and Management, Urmia University, Urmia, Iran
10.22034/psab.2025.211225
Abstract
This research was conducted with the aim of examining the effects of disclosure quality, moderated by accrual items, on earnings volatility and its impact on earnings prediction accuracy in banks of Iran and Iraq over the period 2017 to 2022. The research model was estimated using R software, accounting for spatial dependency effects. The findings indicate that the quality of information disclosure has a positive and statistically significant effect on earnings prediction accuracy in Iranian and Iraqi banks. Conversely, fluctuations in accrual items have a negative impact, while bank size and age exhibit positive effects. Additionally, the book-to-market value ratio and financial leverage negatively influence earnings prediction accuracy. The results of this study can assist investors, financial analysts, and regulatory bodies in the financial markets of Iran and Iraq in better understanding the factors affecting earnings prediction accuracy and making more informed decisions.
Keywords
Disclosure quality
Earnings forecast accuracy
Earnings volatility accruals
Spatial econometrics

Subjects

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  • Receive Date 28 September 2024
  • Revise Date 23 November 2024
  • Accept Date 05 December 2024