The Effect of Management Ability on Overproduction and Sales Prediction

Document Type : Research Paper

Authors

1 Faculty of Economics and Management, Urmia University, Urmia, Islamic Republic of Iran

2 Department of Accounting, Urmia University, Urmia, Iran

3 Department of Accounting and Management, Faculty of Economics and Management, University of Urmia, Urmia, Iran

10.22059/ijms.2024.365719.676218

Abstract

The purpose of this paper is to investigate the effect of management ability on overproduction and sales prediction. The sample examined in this research includes 138 companies admitted to the Tehran Stock Exchange between 2008 and 2023, which were selected by systematic elimination. To test the hypotheses, the method of correlation between variables and multiple regression equations has been used. The research results indicate that as management ability increases, the likelihood of company contributing to overproduction decreases. If management with a high ability level predicts that it will have higher sales next year to avoid inventory shortages, it will overproduce this year. Also, the results of the hypothesis test showed that managers with high ability do not use overproduction for the purposes of natural earnings management, thus, in the following year, the incidence of overproduction will be reduced.

Keywords

Main Subjects

References

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Interdisciplinary Journal of Management Studies (Formerly known as Iranian Journal of Management Studies)
Volume 18, Issue 1
January 2025
Pages 161-172

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