M. Azimi Yancheshmeh
Volume 8, Issue 30 , July 2010, , Pages 99-126
Abstract
This paper investigates earnings quality with a balance sheet approach. Earnings quality has various definitions. One of them is Earnings persistence. It means that the company has more ability for maintaining current earnings. We compared accrual component persistence with cash component. We introduced ...
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This paper investigates earnings quality with a balance sheet approach. Earnings quality has various definitions. One of them is Earnings persistence. It means that the company has more ability for maintaining current earnings. We compared accrual component persistence with cash component. We introduced a comprehensive definition of accruals for measuring the accrual component persistence of earnings. Our population includes listed companies in Tehran Stock Exchange (TSE) for the period 1380 to 1387. We analyzed a sample of 141 companies. In contrast to prior researches, our findings don't confirm less accrual component persistence of earnings in compare with cash component of earnings.
ruholah sedighi
Bita Mashayekhi; Vahid Mennati
Volume 10, Issue 40 , January 2014, , Pages 101-124
Abstract
In this study we investigate the relationship between earnings volatility and earnings predictability (short and long-term), in addition we investigate information content of earnings volatility. Our framework is based on Dichev and Tang (2009). There is a belief that higher earnings volatility indicates ...
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In this study we investigate the relationship between earnings volatility and earnings predictability (short and long-term), in addition we investigate information content of earnings volatility. Our framework is based on Dichev and Tang (2009). There is a belief that higher earnings volatility indicates lower earnings predictability. So according to their framework, financial information of the 400 companies listed in the Tehran Stock Exchange (TSE) from 2002 to 2012 were investigated. Although the predictability trend is not to be strict lower, But the results of this section suggest that earning volatility reduces the predictability of earnings. Moreover, the strength of long-term predictability is reduced. Additionally the loss company (Based on the theoretical framework that losses causes earnings volatility.) excluded and the tests were repeated but similar results were obtained. In the second section of the paper the relationship between the market reaction and earnings volatility was examined. Evidence suggests that the market will demand a higher return for companies with high volatility (higher risk).
S.M Shariat Panahi; J. Ebadi; M. Peimani
Volume 8, Issue 31 , October 2010, , Pages 101-119
Abstract
Maximizing of wealth or better say, end of period expected utility is the main goal of investors. But because of uncertainty of price changes, investors act in an unsafe environment and any risk reduction will redound to decreasing in expected return. Because of this, determining of the best measure ...
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Maximizing of wealth or better say, end of period expected utility is the main goal of investors. But because of uncertainty of price changes, investors act in an unsafe environment and any risk reduction will redound to decreasing in expected return. Because of this, determining of the best measure of risk is so important in finance.
There are many measures to quantify risk of investment. In this paper, we compare some of these measures of risk based on their ability to predict return in various time horizons. Therefore, four measure of risk (standard deviation, mean absolute deviation, semi standard deviation and value at risk) are selected from common and downside risk family and their abilities to forecasting return in one, two and three months periods are examined. Our analysis method is panel regression and results are conducted based on R-squared and nested regressions method. Our sample contains 66 Tehran Stock Exchange listed companies in time period of 1383 to 1387. Our results depict that semi standard deviation and value at risk have a better performance especially in one month prediction.
mehdi moradzadehfard
Mohammad hosein Ghaemi; Mohammad Rahimpour
Abstract
In the long-run event studies, the measurement of abnormal performance due to specific events in the long run is done according to different methods. The calendar - time portfolio approach is one of those methods used to calculate the abnormal returns resulting from the effect of the event being investigated ...
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In the long-run event studies, the measurement of abnormal performance due to specific events in the long run is done according to different methods. The calendar - time portfolio approach is one of those methods used to calculate the abnormal returns resulting from the effect of the event being investigated on the stock price of the firms. In this study, based on the data of 321 firms in the period of 1396-1380, the power of those methods in the Iranian capital market were assessed through simulation. The results show that following a performance appraisal of stock prices of firms in the long run, the three-year period should be taken into account. In addition, the four-factor model based on stock liquidity in the ordinary least square, and the Fama and French’s three-factor model, a four-factor model based on stock liquidity, a four-factor model based on stock beta and a four-factor model based on accruals in weight-average least squares , were identified as good models in the three-year period.
M-B Bagherpour; M Bagheri; H Khadem; R Hosieni Pour
Volume 9, Issue 34 , July 2012, , Pages 103-128
Abstract
Tax revenue is one of the most important financial sources of the Government, which has a leading role in the economic development of each country. However, some companies try to avoid paying their correct taxes, which creates a problem called "tax evasion". The difference between the tax stated by the ...
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Tax revenue is one of the most important financial sources of the Government, which has a leading role in the economic development of each country. However, some companies try to avoid paying their correct taxes, which creates a problem called "tax evasion". The difference between the tax stated by the company and the tax payment identified by the tax authorities (Tax Organization) can be considered as an example of tax evasion. At this time, Tax organization is applying traditional methods to deal with this challenge, which can reduce the Government's revenue and increase its expenses in the long-term. The objective of this research is to apply data mining techniques to examine the effects of financial and non-financial variables on tax evasion by the companies operating in automotive and parts manufacturing industry. The findings show that "assets to net revenue ratio", absolute value of interest expense to net revenue ratio", and board independence" increase and "net income (loss) to assets ratio", and company's performance (net income or loss) decrease the likelihood of tax evasion. These findings can help tax authorities in both policy making as well as conducting tax audit
Mehdi Sadidi; Sajad Ebrahimidardeh
Volume 8, Issue 32 , January 2011, , Pages 103-119
Abstract
Managers are trying to decrease the environmental impact of uncertainty in the reported digit of accounting earnings using their authorities and the flexibility from the accounting standards. This paper aims to examine the relationship between environmental uncertainty and accruals. In doing ...
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Managers are trying to decrease the environmental impact of uncertainty in the reported digit of accounting earnings using their authorities and the flexibility from the accounting standards. This paper aims to examine the relationship between environmental uncertainty and accruals. In doing so, the research methodology was conducted on the basis of using multiple regression and correlation analysis.
The research hypotheses were analyzed through using the data related to 159 companies from Tehran Stock Exchange during the period 1379-1387. The research findings show that there is a significant relationship between environmental uncertainty and accruals and in the uncertain conditions, the size of discretionary accruals are more than the size of non-discretionary accruals. But under these conditions, it cannot be claimed that the variation of non-discretionary accruals are more than discretionary accruals.
afshin ahmadi looye; Hashem Nikoomaram; Fraydoon Rahnamay Roodposhti; Bahman Banimahd
Abstract
In the present study, for the first time, we investigate the effect of the right of auditor's choice on the Accruals based Earnings management based on Glaser's choice theory. The findings of the empirical Reviews by the use of OLS regression on a sample of 173 active firms in Tehran Stock Exchange during ...
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In the present study, for the first time, we investigate the effect of the right of auditor's choice on the Accruals based Earnings management based on Glaser's choice theory. The findings of the empirical Reviews by the use of OLS regression on a sample of 173 active firms in Tehran Stock Exchange during the period from 2009 to 2018(1730 year-firm) show that accrual based Earnings management for Roach firms is more than unroach firm. The results of this research for the first time show that the process of selecting an auditor in Iran follows an opportunistic approach. Therefore, the findings of this study can help investors and the stock exchange organization of the country in the field of legislation to deal with opportunistic managers, such as access to stock options of the ROARCH Group. In this study, firstly, by studying the theoretical foundations of the publishing of asset-backed securities and other sources of information, such as guidelines issued by the Capital Markets Authority, the International Institutions and International Financial Institutions' Guidelines, the Primary Model The asset back rating was extracted, and then this model was developed for the purpose of obtaining consensus and Delphi Research methodology was subjected to an expert opinion survey and ultimately the final model of asset-backed securities ranking was presented.
Mahdi Sadidi; Ahmad Mohamadi Saniani
Volume 11, Issue 41 , April 2014, , Pages 105-129
Abstract
The goal of this paper is to study of Relationship between cash flow sensitivity of investment with capital expenditure..the sample has been divided into two parts, over investment and under investment companies with using measure of investment mean and shown that the cash flow sensitivity of investment ...
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The goal of this paper is to study of Relationship between cash flow sensitivity of investment with capital expenditure..the sample has been divided into two parts, over investment and under investment companies with using measure of investment mean and shown that the cash flow sensitivity of investment in over investment companies is greater than under investment companies .also Positive relationship have been shown between market to book ratio and capital expenditure. Also by using multiple measure (ratio of dividend, size and KZ index) representative of financial constraints, we understand that positive relationship is exist between cash flow sensitivity of investment with dividend ratio and size and negative relationship is exist between cash flow sensitivity of investment and KZ index.
Farokh Barzideh; Mohamad taghi Taghvifard; Fatemeh Zamanian
Volume 10, Issue 39 , October 2013, , Pages 105-124
Abstract
This article is seeking to provide a proper model for selecting portfolio. To do that, first we should studied literature to discover suitable criteria. Then we have used a questionnaire for determining criteria's relationships to rank them. Managers of mutual fund asked to answer this questionnaire. ...
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This article is seeking to provide a proper model for selecting portfolio. To do that, first we should studied literature to discover suitable criteria. Then we have used a questionnaire for determining criteria's relationships to rank them. Managers of mutual fund asked to answer this questionnaire. To determine these relationships, we used DEMATEL technique. After that, these criteria were ranked by using Analytic Network Process. Thus, 50 companies with more cash in market between1385-1389 were chosen to assess these criteria. These companies were ranked by TOPSIS and a portfolio selected with the top 30. Return of portfolio consist of 30 companies had compared with the average return of portfolio consist of 50 stock and was shown by Sharp Index that the proposed model can be useful for managers in their portfolio selection.
Elnaz Tajvidi0F; Hamideh Esnaashari; Ahmad Haj Noruzi
Abstract
AbstractOne of the most considered discussions in recent years is managementdecision about expense. Traditionally, profit analysis models haveassumed expense behavior depends on production and sales volatility.Although researches which are done in the 90s show holding thisassumption is not true. So these ...
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AbstractOne of the most considered discussions in recent years is managementdecision about expense. Traditionally, profit analysis models haveassumed expense behavior depends on production and sales volatility.Although researches which are done in the 90s show holding thisassumption is not true. So these kinds of conclusions cause trying toanswer why such behavior occurs. This Research Examines theRelationship Between prior sales Changes and Asymmetric ExpenseBehavior and Positive or Negative Management attitude effect on it.In order to measure of asymmetric expense behavior, backing researchliterature, current relationship between sg & a changes and saleschanges is utilized; sales changes relating to two last periods arecalculated as a proxy for management attitude too. So 105corporations' financial data listed on Tehran Stock Exchange (TSE)are collected (1050firm-year) during 1383 to 1392. OLS – fixed effectmethod is used to analysis data. the results reveal that expense behavein asymmetric manner; prior sales changes has positive relationshipwith expense asymmetric behavior by reducing uncertainty; andmanagement attitude can moderate the effect of it on AsymmetricExpense Behavior. As a Consequence, Positive Attitude Strengthenthe positive Relationship between Prior sales changes and ExpenseAsymmetric Behavior and Negative Attitude causes more SymmetricExpense Behavior
Hossein Etemadi; Hassan Jabari
Volume 5, Issue 18 , July 2007, , Pages 105-122
Abstract
This study investigates the effects of differential accountability pressure strength on auditors’ materiality judgment. We evaluate whether incremental levels of accountability (i.e., review, justification, ...
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This study investigates the effects of differential accountability pressure strength on auditors’ materiality judgment. We evaluate whether incremental levels of accountability (i.e., review, justification, feedback) increase judgment conservatism, decreases variability, and increase effort. Eighty four auditors participated in a between -subjects experiment that included a planning materiality task. As predicted, auditors under higher levels of accountability pressure (i.e., justification, feedback) provided more conservatism materiality judgment and had less judgment variability than auditors under lower levels of pressure (i.e., review, anonymity). The results also indicate that accountability strength was positively related to the amount of time spent on the task and explanation length. We consider implications for research, practice, and policy in the context of the studies limitations.
Mohsen Khoshtinat; Mohammad Reza Sarebanha
Volume 1, Issue 2 , July 2003, , Pages 107-139
Abstract
There are considerable debates on how dividend policy effects firm value. Some researchers believe that dividends increase shareholder wealth; others believe that dividends are irrelevant, and still others believe that dividends decrease shareholder wealth. The main purpose of this study was to investigate ...
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There are considerable debates on how dividend policy effects firm value. Some researchers believe that dividends increase shareholder wealth; others believe that dividends are irrelevant, and still others believe that dividends decrease shareholder wealth. The main purpose of this study was to investigate the effects of dividend on common stock prices. To test the research hypothesis, the study used the 1994-2002 financial data of a cross - sectional set of companies listed in the Tehran Stock Exchange. The financial data used in the study belonged to a total of 60 corporations who met certain predetermined research criteria. Regression was used to test the research hypothesis. The results show positive correlation between the dividend and common stock prices.
Saber Sheri; Abdolkarim Moghaddam
Volume 5, Issue 20 , January 2008, , Pages 107-128
Abstract
In this survey, the impact of auditor quality and asset reliability on equity valuation has been studied. It has used the results of Richardson et al (2005), for categorizing asset and liabilities in four levels as low, medium, high and not classified groups. The criteria of high quality auditor were ...
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In this survey, the impact of auditor quality and asset reliability on equity valuation has been studied. It has used the results of Richardson et al (2005), for categorizing asset and liabilities in four levels as low, medium, high and not classified groups. The criteria of high quality auditor were three independent factors as audit tenure, audit firm size and auditor industry specialization. The questions of this study were as follows: Does auditor quality influence the market's valuation of assets and is the mitigating effect of a quality auditor more pronounced for low or medium reliability asset measures? The results showed that audit tenure does not affect auditor quality but audit firm size and auditor industry specialization improve that. The second hypothesis which indicates auditor quality has no significant effect on market's perception of high reliability accruals is approved.
Gholamreza soleimany Amiri; Ali Abdollahi; Mina Abouhamzeh
Abstract
According to deficiencies of Iran's tax reporting on the one hand and the capabilities of the extensible Business Reporting Language (XBRL) on the other hand, this paper addresses the issue of feasibility of using Extensible Business Reporting Language (XBRL) in Iranian National Tax Admission Organization ...
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According to deficiencies of Iran's tax reporting on the one hand and the capabilities of the extensible Business Reporting Language (XBRL) on the other hand, this paper addresses the issue of feasibility of using Extensible Business Reporting Language (XBRL) in Iranian National Tax Admission Organization to improve tax reporting in Iran. This research, in the first step, examines theoretical and empirical literature, presents a theoretical model and identifies the factors influencing the feasibility of using this language in organizations using the three-part technology, organizational and environmental (TOE) model. In the second step, by adopting a qualitative method and performing 21 semi-structured interviews, the original theoretical model was amended and the factors influencing the feasibility of using this language in National Tax Admission Organization have been identified. In the third step, by analyzing 70 Fuzzy Delphi questionnaires, we present the final conceptual model and evaluates the feasibility of using Extensible Business Reporting Language (XBRL) in Iranian National Tax Admission Organization. The results of this study show that, although from the perspective of technology, the use of Extensible Business Reporting Language (XBRL) in the tax affairs organization is feasible, but from organizational and environmental perspective, it is not possible to use in Iranian National Tax Admission Organization and face with organizational and environmental challenges.
Hamid Khaleghi Moghaddam; Ali Rahmani
Volume 1, Issue 1 , April 2003, , Pages 109-142
Abstract
This Paper Provides empirical evidence on the predictive ability of nonearning annual report numbers under an earning prediction approach.
The most studies report that earning were generated by a random walk Process. The paper investigates information Content of accounting items. The Logit prediction ...
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This Paper Provides empirical evidence on the predictive ability of nonearning annual report numbers under an earning prediction approach.
The most studies report that earning were generated by a random walk Process. The paper investigates information Content of accounting items. The Logit prediction models were estimated based on pooled data set of 71 firms over the period 1371-79.
The result demonstrates the predictive power of accounting item to explain and Forecast of earnings. However the predictive Performance model in the period 1377-79 was not significantly different from random walk model; except in 1378.
Gross margin ratio, growth in Assets per share, growth in Assets, growth in Sales to assets ratio, total debt to total assets, pretax income to sales, growth in net income to sales, growth in operating expense to sales and changes in return on equity, correlated with earnings and these explanatory variables whose estimated coefficients had a wald Statistic significantly different from zero at the 10% level.
The finding suggest that a firm's nonearings annual report numbers contain information concerning the direction of its next year's earnings change.
Ahmad Modares; Mohammad Farajolalhzadeh
Volume 6, Issue 21 , April 2008, , Pages 109-127
Abstract
Investigating firms’ performance is a special interest for investors, creditors and other stockholders, and the results of these studies are used for decision making. In order to evaluating firm’s performance, different measures have been introduced and been used. However, none ...
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Investigating firms’ performance is a special interest for investors, creditors and other stockholders, and the results of these studies are used for decision making. In order to evaluating firm’s performance, different measures have been introduced and been used. However, none of these measures are perfect and been criticized, and efforts have been placed to introduce new measures.
Given to the existing limitations in the accounting, economic, and market information to evaluate firm's performance, researchers have tried to use Tobin's Q, as an integrative (synthetic) data, for firm's performance evaluations.
This paper studies the usefulness of replacing EPS with Tobin’s Q by evaluating the correlation between these two. Our findings show that a positive correlation between EPS and Tobin's Q. However, this correlation is not (rp = 0.484). Our results do not suggest using only Tobin's Q in evaluating firm's performance.
farokh barzideh
Farshid Kheirollahi; Farzad Eivani; Ehsan Mohebi
Abstract
Issues and problems associated with financial statements have raised ambiguities about the role and responsibilities of the board of directors as well as the audit committee in financial reporting. Accounting restatements indicates that the financial statements of the past periods are unlikely to be ...
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Issues and problems associated with financial statements have raised ambiguities about the role and responsibilities of the board of directors as well as the audit committee in financial reporting. Accounting restatements indicates that the financial statements of the past periods are unlikely to be presented in accordance with the generally accepted accounting principles. In addition, the Accounting Restatements may indicate weakness in the firm's internal control system. An efficient director labor market wills likely reward directors who have a reputation for effectiveness with additional board positions and associated benefits, and penalize the poor performers by loss of their positions and benefits. In the present study, the consequences of financial statements as a reporting failure for non-executive directors with an emphasis on the audit committee are examined. For this purpose, 43 listed firms were selected as the main sample and 43 listed firms as the control group during the years 2012 to 2016 from Tehran Stock Exchange. According to the results of the study, the financial restatements have not led to the imposition of labor market fines for outside director
Bakhtiar Ostadi; Parvin Tadrisi Pajou
Abstract
All financial institutions and banks have risks in their operations that have not been able to eliminate them, but there is the possibility of managing these risks. Therefore, financial institutions for continuity should be identify, control and reduce the risk of their life to do this, factors affecting ...
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All financial institutions and banks have risks in their operations that have not been able to eliminate them, but there is the possibility of managing these risks. Therefore, financial institutions for continuity should be identify, control and reduce the risk of their life to do this, factors affecting various risks will be very useful. In many of the financial institutions framework for managing risks to consider. In this paper, we assume the existence of a significant relationship between financial risk and financial ratios that can be validity by examining past research and then using canonical correlation analysis model to evaluate and calculate the relationship between financial risks and financial ratios presented. Canonical correlation analysis is an extension of multiple correlation for the relationship between the two sets of variables. Canonical analysis, linear combination of variables that are highly correlated with the second set of variables is found. Three financial risks include liquidity risk, credit and market using certain financial ratios and indicators have been defined and are considered as independent variables. As well as financial ratios, liquidity, leverage and profitability are dependent variables .To calculate risk and financial ratios of the information contained in the financial statements and the balance sheets of 10 banks Between 88 to 93 were used. Finally, it appears that liquidity risks have the greatest impact on financial ratios. After calculations, it is determined that liquidity risks have the most effect on the liquidity, leverage and profitability rations of bank with the effect values of 0.697, 0.644 and 0.624, respectively
Accounting and various aspects of finance
hasan yari; rafik baghomian
Abstract
One of the most important tasks for managers is decision-making. Life goes on today while the shadowing of uncertainty over all affairs has completely changed the decision-making process for various reasons. Companies, during their economic life, also face various factors that are unpredictable, and ...
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One of the most important tasks for managers is decision-making. Life goes on today while the shadowing of uncertainty over all affairs has completely changed the decision-making process for various reasons. Companies, during their economic life, also face various factors that are unpredictable, and they are corporate managers who make the necessary final decisions for the company. Managers, like everyone else in the community, have different individual characteristics, talents, desires, attitudes, and value systems that can influence company policies. The present study aims to investigate the effect of managerial ability on companies' risk-taking behavior. In this regard, we analyzed the financial statements of 165 companies listed in Tehran Stock Exchange (TSE) for the period of 1388-1397. We measured managerial ability using the model introduced by Demerging et al. (2012). Also, we measured the risk-taking behavior of companies using two variables: standard deviation of the Return on Assets (ROA), the ratio of capital expenditures to total assets, and financial leverage of the company. Hypothesis testing is carried out through a multiple regression model with panel data. The results indicate that managerial ability has a positive and significant relationship with the ROA and the ratio of capital expenditures to total assets.
Rafik Baghoomian; Kayvan AzizzadehMoghadam
Volume 11, Issue 43 , October 2014, , Pages 111-133
Abstract
Ability of companies to identify potential internal and external financing resources is an important factor fortheir growth and improvement. Main objectiveof companies is to maximize their shareholders' wealth, and capital structure is one of the effective factors for this purpose which requires optimal ...
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Ability of companies to identify potential internal and external financing resources is an important factor fortheir growth and improvement. Main objectiveof companies is to maximize their shareholders' wealth, and capital structure is one of the effective factors for this purpose which requires optimal use of financial resources to create proper returns regarding risk taken by companies. Based on data derived from a sample of 157 companies listed on Tehran Stock Exchange (TSE) from 1383 to 1389, this study examined relationship between company characteristics and capital structure.Approach of this study is descriptive-correlative, and panel data statistical method was used to test the hypotheses.
Test results showthatsize, tangibleassets, andbusiness risk of the company have a significant positive relationshipwithcapital structure; and growth opportunities of the company has a significant negative relationship with it. However, the results do not show any meaningful relationship between age and industry of the company and capital structure
Gholamreza Mansourfar; Farzad Ghayour; Shabnam Khaleghparast Athari
Abstract
The purpose of study is to investigate comparative ability of accountinginformation to predict indices volatility of companies listed in Tehran StockExchange using intelligent methods including Support Vector Machine,Artificial Neural Network and classic Logistic Regression model. Sample ofstudy includes ...
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The purpose of study is to investigate comparative ability of accountinginformation to predict indices volatility of companies listed in Tehran StockExchange using intelligent methods including Support Vector Machine,Artificial Neural Network and classic Logistic Regression model. Sample ofstudy includes 91 companies listed in Tehran Stock Exchange that have beenclassified in 9 industrious groups during time period of 2003-3013.Considering 11 corporate financial variables, study results show that despitepredicting ability of around 60% by Support Vector Machine and ArtificialNeural Network, there is significant difference between actual and predictedresults. Classic Logistic Regression model also can explain only 4%industries’ indices volatility using selected 11 corporate financial variables.Finally, although intelligent methods are superior to classic methods,accounting information solely are not well-explainer variables for predictingindustry index volatility and variety of variables such as financial, political,economical are effective in predicting industry index volatility.
M. M. Naderi Nooreyni; F. Hashemnia
Abstract
AbstractThe purpose of this paper is to investigate the explanatory power of value-based performance measurement models, compared with traditional accounting performance measures, in explaining stock market return in Tehran Stock Exchange. The paper employs incremental information content approach to ...
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AbstractThe purpose of this paper is to investigate the explanatory power of value-based performance measurement models, compared with traditional accounting performance measures, in explaining stock market return in Tehran Stock Exchange. The paper employs incremental information content approach to examine which performance measure best explains stock market return. Traditional accounting variables used in this research are: Earning before tax, Return on assets, Return on equity, Earning per Share and Operating cash flow and value based variables are economic value added, Refined economic value added and Shareholder value added. The population of this research is all listed companies firms in Tehran Stock Exchange and 128 firms are selected as the sample which is examined over the years 1384 to 1393. We used panel data for testing hypothesis and also Views software. The results indicate EVA & REVA have incremental information content in comparison with traditional accounting variables
