The Effect of Management Ability on Overproduction and Sales Prediction

Document Type : Research Paper


1 دانشگاه ارومیه (نازلو)

2 Urmia University, Iran

3 Urmia University



The aim of this paper is to examine the effect of management ability on overproduction and sales prediction in the Tehran Stock Exchange during the period of 2008-2023. For testing hypotheses, multiple regression equations were used. The final results of hypothesis testing showed that management ability a negative impact on overproduction and reverse overproduction and a positive and significant effect on sales prediction. The research findings indicate that the higher the management ability, the less the company will have a lower share in overproduction. If management with a high ability level expects higher future sales to avoid inventory lack in the coming year, it will overproduce this year. Additionally, the findings of hypothesis test demonstrated that managers of high-ability do not employ overproduction for real earning reasons of management, so overproduction reverse, a sign of earnings management, will occur less frequently in the coming year


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