Identification of Efficient Factors In Earnings Forecast Error of Initial Public Offerings at Tehran Stock Exchange

The objective of this study is to identify efficient factor in earnings forecast error of Initial Public Offerings (IPOs) at Tehran Stock Exchange. Our sample contains initial listings on the Tehran Stock Exchange (TSE) for the period 1999-2006. The objective of this selected period is remarkable developing of stock exchange for related period (1999-2006) and increasing listed volume of companies which offer their stocks at TSE for the first time. The result of this study with multiple regression analysis shows that earning forecast error is reversely related to profitability ratio. Other independent variables do not have significant relation with IPOs earning forecast error.