Survey of profit forecasting effect by manager

After survey by Patel (1976) the behavior of stock prices to forecast earnings per share of studies about effects of forecast continued.but mainly studies the stock market earnings forecasts in their countries that it is optional. This paper examines the information content of earnings and adjusted the initial forecasts by the Directors in Listed Companies in Tehran Stock Exchange is concerned, based on the methodology of event studies, changes in stock market reaction after the announcement of initial and adjusted earnings predicted by the manager.Test results are based on surveys of nearly 1,700 dividend declared by the directors during the years 1390 to 1386 shows that prediction markets to forecast profit by predicting market reaction to earnings that managers react early to predict adjustment more profit and also stock trading volume has increased after the declaration of anticipated profits.