| Abstract:
In this paper the effects of five factors, firm size, degree of financial distresses, growth rate, off-organization financing and price control on management earnings forecasts are studied. The findings of this study show the earnings are forecasted optimistically; also it shows that off-organization financing affects the management earnings forecasts, which leads us to accept the research hypothesis. We find relationships between firm size, degree of financial stresses and management earnings forecasts, but in the wrong direction as the research hypothesis expected. The study did not confirm a meaningful relationship between growth rate, price control and bias in management earnings forecasts.
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