The Study of Impact Accounting Estimates on Prediction of Financial Performance and Liquidity of firms listed in Tehran Stock Exchange

Zalaghi, Hassan; Firouzabadtapeh, Farzaneh

The Study of Impact Accounting Estimates on Prediction of Financial Performance and Liquidity of firms listed in Tehran Stock Exchange

Document Type : Original Article

Authors

Hassan zalaghi ¹

Farzaneh firouzabadtapeh ²

¹ Buali sina University, Faculty of Economic and Social Sciences , Accounting Department

² Alvand Institue of Higher Education, Accounting Department , Student of MSc in Accounting

Abstract

Forecast is a key factor for Financial Usres in economic decisions. Investors often used to estimate of financial performance and Liquidity until that they can to judge about value of per share and Financial performance of own firms. The main Purpose of this research is to assess the impact of accounting estimates on the prediction of firms financial performance and liquidity and that whether estimates made in the prediction of financial performance and liquidity are useful and effective. The study sample is 104 firms listed on the Tehran Stock Exchange over 2007-2016 period. To test of hypotheses used to linear multiple regression based panel data and also we used to Eviews software for data analyses. Findings from of hypotheses showed that accounting estimates be able to predict liquidity through current ratio and quick ratio and too could to predict of financial performance through return on sales and return on assets.

Keywords

accounting estimates

financial performance

liquidity