The relationship between top management turnover with earnings management and default risk and earnings forecast error in the Tehran Stock Exchange

Abstract

In this paper, we present a study to measure the relationship between top management turnover with earnings management and default risk and earnings forecast error in the Tehran Stock Exchange. The proposed study selects necessary information from 117 firms from the exchange over the period 2005-2010 and, using ordinary least squares technique as well as Pearson correlation ratios, examine three hypotheses of this paper. The results of the survey indicate that there are some meaningful relationships between change in top management with earning management, default risk and earning forecast error.

Keywords

• Top Management Turnover
• Earnings Management
• Default Risk
• Earnings Forecast Error