The Effect of Quality Level of Voluntary Disclosure of Financial and Non-Financial Key Performance Indicators on the Earnings Forecast

Many studies have been carried out to evaluate the effect of variables such as firm size, forecast horizon, financial leverage ratios, etc. on the earning forecast accuracy. The aim of this study was to identify Key Performance Indicators (financial and non-financial) and examine the effect of their disclosure on the earnings forecast accuracy in Tehran Stock Exchange companies. Financial indicators include disclosure of financial key performance of internal process, innovation, training and environmental perspectives and non-financial indicators include disclosure of non-financial key performance from investors’`, employees`, customers`, suppliers` perspectives and social performance. In this regard, the variables such as variance of return on equity, sales growth, firm size, systematic risk, leverage, liquidity, growth, profitability as well as the control variables are considered. The sample consists of 118 companies listed in Tehran Stock Exchange from the beginning of 1390 until the end of 1392 (Iranian Calendar). This research with regard to purpose is practical and for conclusion is descriptive - analytical. In this study, the level of disclosure of information connected to assessing the performance is measured by the sentence. The results of this study show that there is a significant relationship between the disclosure of key performance indicators and earnings forecast accuracy. Also, there is a significant relationship between the disclosure of non-financial key performance indicators and earnings forecast accuracy.