Product Market Competition, Accuracy of Managers' Forecasted Earnings, Ownership Type: Evidence from international companies

Earnings forecast by managers, is a sign of managers' personal information delivery along with their claims confirmation which helps investors to better understand the relationship between the manager's forecast and the firm's future performance and correctly pricing the securities. In this regard, product market competition is one of the external regulatory mechanisms that plays a role in the disclosure of information to investors and affects forecasted earnings properties. Also, public/private ownership is effective in disclosure of information by managers and has an important role in building competitive environment in market and in interaction with the amount of product market competition, can has impact on the quality of information disclosure by managers. Hence, the aim of this research is to investigate the effect of product market competition on the accuracy of managers' forecasted earnings and the impact of ownership type on their relationship. In order to achieve the goal of the research 86 firms among during the period from 2007 to 2016 were screened in the community. According to the findings, the impact of product market competition on the accuracy of forecasted earnings is significantly positive. So, competition as a control mechanism has an effective role in disclosure of information by firms and leads to more accurate forecasts by managers. But the effect of state (public) ownership on earnings forecast's accurate is not significant. The results also show that the state ownership in interaction with product market competition hasn't significant impact on the accuracy of forecasted earnings.