The purpose of this study is to investigate the effect of Critical Accounting Estimate Disclosures and the Predictive Value of Earnings in firms accepted to Tehran Stock Exchange. The Critical Accounting Estimate Disclosures emphasizes the proper disclosure of accounting estimates in notes accompanying financial statements. For this purpose, the financial statements of 110 companies have been compiled during 1389-1396 years. To examine of the hypotheses, multiple regression with panel data was used. The results of evaluation of hypothesis showed that the predictive value of earnings with respect to future cash flows is lower for firm-years with a more CAE disclosure in comparison to fewer firm-years CAE disclosure.
The purpose of this study is to investigate the effect of Critical Accounting Estimate Disclosures and the Predictive Value of Earnings in firms accepted to Tehran Stock Exchange. The Critical Accounting Estimate Disclosures emphasizes the proper disclosure of accounting estimates in notes accompanying financial statements. For this purpose, the financial statements of 110 companies have been compiled during 1389-1396 years. To examine of the hypotheses, multiple regression with panel data was used. The results of evaluation of hypothesis showed that the predictive value of earnings with respect to future cash flows is lower for firm-years with a more CAE disclosure in comparison to fewer firm-years CAE disclosure.