Management Forecasts and Unsystematic Risk: Role of Desirable Information Environment

In the present paper, the predictive error of management as one of the increasing non-systematic risk factors through the information asymmetry channel is discussed and explained. Also, the existence of a dynamic and appropriate information environment can reduce this relationship by reducing information asymmetry. The aim of this study was to investigate the relationship between management forecasts and the unsystematic risk with regard to the role of desirable information environment. In order to measure the unsystematic risk we used the capital asset pricing model. This research is based on the method of data collection in the field of descriptive accounting research. From the perspective of  the target, it is applied and in terms of the method is a correlation-regression analysis. The test research hypotheses, multivariate regression analysis and panel data approach with fixed effects is used. The statistical population of the study is the companies listed in Tehran Stock Exchange between 2011 and 2016 and the sample size is 528 observations (year - company). Findings indicate that there is a positive relationship between management forecasts and the unsystematic risk and desirable information environment have the reverse effect on this relation and reduce the strength of this relationship