The Effects of Forward-looking Information Disclosure on Future Profitability of Firms

Document Type : Original Article


1 Ph.D. Stu. Accounting, Tonekabon Branch, Islamic Azad University, Tonekabon, Iran

2 Department of Accounting, chalous Branch, Islamic Azad University, chalous, Iran

3 Department of Accounting, Tonekabon Branch, Islamic Azad University, Tonekabon, Iran


Forward-looking information is intended to satisfy the increasing requirements of investors as it offers investors additional means of evaluating future perspective and risks along with current concerns of the firm. Futuristic investors want to invest in those firms who have high performance in future. As a result, the financial statements which reveal future information will useful to existing and potential investors in particular and to the other users in general. The aim of this study is to examine the effect of Forward-looking Information Disclosure on Future Profitability in the Tehran Stock Exchange. The overall research method is applied in terms of its purpose and is based on post-marketing research design. Of the comparable firms listed in Tehran Stock Exchange, through systematic knockout, 130 companies have been studied over a period of 6 years. To determine the relationship between variables, multiple linear regressions based on panel data analysis with fixed effects has been used. Findings showed that there is no significant relationship between the level of forward-looking information disclosure and the tone of forward-looking information disclosure with the firms’ Future profitability.


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