Impact of forcasting management earn on corporate risk-taking and firm value of firm inTehran stock exchange

Companies with the disclosure of prediction of profit per share for shareholders can present a vivid image of their own future resulting in their acceptability in the stock market. Publishing such information ensures investors that company acted impartially to provide it. This study investigated the impact of publishing the prediction of profit management on the relationship between company value and risk taking. The statistical population included all the companies listed in Tehran Stock Exchange from 2004 until 2014; however, the test period was considered to be between 2008 and 2013. The systematic sampling method was used in this study. The method of least squares was employed to estimate the research models. The risk criteria for company, annual standard deviation of returns on shares, deviation of operational cash flow, criteria for company value, return on next-year shares, and the market value of shareholders’ equity were taken into account in this study. The first and second and third research hypotheses indicate that the moderating variable is negative and significant. The predictions of profit management increases the positive relationship between organizational risk taking and return on next-year shares in company. The predictions of profit management increases the positive relationship of the annual standard deviation of daily returns on shares and the standard deviation of operational cash flows with return on nextyear shares in company. The results of the fourth and fifth and sixth hypotheses show that the predicting variable of profit is positive and significantThe moderating variable is negative and significant. The moderating variables are negative and significant.. The results of regression tests indicate that the prediction of each share published by company draws the attention of capital market potentially, and the activists will take the abovementioned numbers into account in decision-making models for investment in future.