S.M. Shariat Panahi; Y. Badavar Nahandi
Volume 2, Issue 7 , October 2004, , Pages 77-96
Abstract
Financial experts in the response to critics of EVA, propose the refined form of EVA that focuses on relevance of information versus its reliability. In other words' this measure that we call it "REVA", computes the opportunity cost of used resources in the base of their market values. In ...
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Financial experts in the response to critics of EVA, propose the refined form of EVA that focuses on relevance of information versus its reliability. In other words' this measure that we call it "REVA", computes the opportunity cost of used resources in the base of their market values. In this research we studied information content and explanatory power of REVA for different measures of risk-adjusted stock return. The hypothesis of this study was tested for 50 active corporations introduced in the research period. We used the available statistical society of corporations accepted in Tehran stock exchange, and tested the Correlation degree between variables of the research and the explanatory power of REVA for the changes of different measures for risk-adjusted stock return. The results of this study indicate that, there is a weak positive correlation between REV A and measures of risk-adjusted stock return, and a (differential or abnormal return)' REV A (total risk-adjusted stock return), and RVOL (systematic risk-adjusted stock return) orderly have the greatest correlation coefficient with REV A. It means: rREVA,α > rREVA,RVAR > rREVA,RVOL
M. Gh. Osmani; M. H Namdar
Volume 8, Issue 31 , October 2010, , Pages 77-100
Abstract
According to the Iranian Accounting Standard No. 2, alternative use of both direct and indirect methods of reporting cash flows from operating activities is allowed. In practice, despite all persuasive and encouraging measures favoring the direct method, Iranian companies, free in their choice of which ...
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According to the Iranian Accounting Standard No. 2, alternative use of both direct and indirect methods of reporting cash flows from operating activities is allowed. In practice, despite all persuasive and encouraging measures favoring the direct method, Iranian companies, free in their choice of which method to use, tend to prefer indirect method due to its being easier. Indirect method involves net cash flow reporting rather than a report of each and every element of cash flows from operating activities. This method could be in clear contrast to the general principles concerning the set off between cash inflows and outflows. The general principle dealing with this issue, developed by IASB (2007), declares that setting off cash outflows and inflows is permitted only when presenting the gross numbers is devoid of any informational content.
Accordingly, the present study is an effort to examine informational content of Cash flow disaggregation through testing their ability in predicting future earnings of listed companies in Tehran Stock Exchange. The final goal is to help managers and regulatory authorities with specifying the kind and amount of information to be presented in cash flow statement, and investors with estimating future earnings.
Results show that Cash Flow disaggregation, compared to net cash flow from operating activities are better predictors of future earnings.
Nezamoddin Rahimian; seyedjavad mirabbasi; Atena Khazen
Abstract
In recent years, some managers have been smoothing income with real activities and accrual items in companies. They have been effecting on reported profits by utilization of earnings management instruments. Financial distress and bankruptcy are significant issues in the economics and accounting literature. ...
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In recent years, some managers have been smoothing income with real activities and accrual items in companies. They have been effecting on reported profits by utilization of earnings management instruments. Financial distress and bankruptcy are significant issues in the economics and accounting literature. Bankruptcy is happened when the firms cannot settle their debts, and bankruptcy prediction models try to prevent it. This study shows the effect of real earnings management on bankruptcy prediction models. Therefore, abnormal production costs, abnormal discretionary expenses and abnormal operational cash flow are considered as a real earnings management methods. Also modified Altman model is used as criteria for bankruptcy of the firms. The sample of this study is consisted of 202 listed firms in Tehran Stock Exchange during 2009-2016. The hypothesis of this study has been examined by Multivariate Regression Model. The results showed that there is a significant relation between abnormal production costs and abnormal operational cash flows with bankruptcy prediction modelexcess stock returns.
Yahya Hassas Yeganeh; Saber Sheri; H. Khosrownejad
Volume 6, Issue 24 , January 2009, , Pages 79-115
Abstract
In order to solve the distrust problem of the moral hazard in information asymmetry issue in capital markets, corporate governance is introduced. This is an assumption that corporate governance results to a healthful life for organizations in a long horizon and protects the stockholders interests. International ...
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In order to solve the distrust problem of the moral hazard in information asymmetry issue in capital markets, corporate governance is introduced. This is an assumption that corporate governance results to a healthful life for organizations in a long horizon and protects the stockholders interests. International organizations and institutes, suggest the governance codes as a tool to develop the competition ability of corporate to access to the international capital sources, and it also affects economic and employment improvements.
This research studied some of the corporate governance mechanisms in TSE and examines the probable correlation between earning management and corporate governance mechanisms, debt ratio and firm size. The current study employs the cross-sectional modified version of Jones, where abnormal working capital accruals are used as proxy for earnings management. The study reveals that corporate governance mechanisms (board size, proportion of independent directors, competence of independent directors, separation of the roles of CEO and chairman, CEO membership, ownership structure and existence of audit dept.) have non-significant relation with earning management. It also shows that debt ratio and firm size have no significant relation with earning management.
A. Kbodamipour; R. Mahroomi
Volume 8, Issue 30 , July 2010, , Pages 79-98
Abstract
The purpose of this study is to investigate the existence of conservatism and its effect on value relevance of accounting information. The methodology of present study is quasi experimental. The statistical society includes companies accepted in Tehran Stock Exchange, and the time span of the study is ...
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The purpose of this study is to investigate the existence of conservatism and its effect on value relevance of accounting information. The methodology of present study is quasi experimental. The statistical society includes companies accepted in Tehran Stock Exchange, and the time span of the study is from the beginning of 2000 up to the end of 2008. The Basu Model was exploited for investigating and assessment of the extent of conservatism in sample companies and for the investigation of value relevance of accounting information, the present study made use of Easton & Harris Model. The results are indicative of the presence of conservatism. Furthermore it was observed that as we descend from companies with low conservatism to companies with medium conservatism, the value relevance of accounting information increases; although the mentioned increase is not perceptible, value relevance of accounting information decreases a great deal when moving from companies, medium in conservatism toward companies with high conservatism. Consequently there cannot be found a clear relevance between conservatism and value relevance of accounting information.
gholamreza kordestani
Mohammad Mahdi Bahrololoum; Parvaneh Shamsi
Abstract
The main aim of the present study is to examine the effect of intellectual capital disclosure quality on capital cost of companies listed on Tehran Stock Exchange. Statistical population of the present study is consisted of companies listed on Tehran Stock Exchange during the time frame of 2008 to 2015 ...
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The main aim of the present study is to examine the effect of intellectual capital disclosure quality on capital cost of companies listed on Tehran Stock Exchange. Statistical population of the present study is consisted of companies listed on Tehran Stock Exchange during the time frame of 2008 to 2015 and sample volume is considered equal to 140 companies by using screening method. in this study, hybrid data is utilized. intellectual capital disclosure quality (disclosure of structural capital, disclosure of human capital and disclosure of relational capital) were considered as independent variables as well, in order to study their effect on capital cost of companies. In this study, in which panel data was used, results obtained firm data analysis by using multiple-variable regression at 95% confidence indicated that intellectual capital disclosure quality (mental capital disclosure, human capital disclosure and relationships capital disclosure) have a negative (reverse) effect on capital cost.
Financial Accounting
Mosa Bozorg Asl; mohamad marfo; mahdi mahannejad
Abstract
Linguistic features of information provided by business unit management could facilitate the goals of the transmission of economic facts. In recent years, these characteristics have always been considered in research in the field of accounting and behavioral finance. Therefore, this study seeks to examine ...
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Linguistic features of information provided by business unit management could facilitate the goals of the transmission of economic facts. In recent years, these characteristics have always been considered in research in the field of accounting and behavioral finance. Therefore, this study seeks to examine the effect of financial reporting tone on audit fees. The sample consists of 63 companies listed in Tehran Stock Exchange for the period from 2012 to 2019. Financial reporting tone is measured using the model introduced by Muhammad et al (2019). Also, a natural logarithm is used to measure audit fees. The data are analyzed and the hypotheses are tested based on the multivariate regression model and panel data. The findings show that financial reporting tone has a significant negative effect on audit fees. In other words, if the financial reporting tone conveys an optimistic tone, the audit fee will be less. Results indicate that financial reporting tone reflects factors that auditors consider in assessing audit risk.
Accounting report
Alireza Rahrovi Dastjerdi
Abstract
Since the volume of corporate information disclosures is constantly increasing, this study seeks to distinguish information with a "text" nature from information with a "numbers" nature to examine the existence and the direction of the volume of these two types of information on the efficiency of the ...
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Since the volume of corporate information disclosures is constantly increasing, this study seeks to distinguish information with a "text" nature from information with a "numbers" nature to examine the existence and the direction of the volume of these two types of information on the efficiency of the stock price formation in companies. This study also deals with the effect that the volume of these two types of disclosed information have on each other in the process of price formation. However, it does not concentrate on the quality of the content of accounting information and its usefulness. The research sample consists of 169 companies listed on the Tehran Stock Exchange in 1397 (Iranian calendar). Research hypotheses were tested cross-sectionally using ordinary least squares regression. The results revealed that the amount of disclosed information, whether in the form of "text" or "numbers," in general, does not significantly affect the efficiency of the process of the companies' stock price formation in the Iranian capital market. Also, the volume of these two types of information cannot strengthen the influence of each other on the efficiency of the stock price formation process. In addition to expanding the accounting literature in the areas of "disclosure" and "market efficiency," the results of this study contain significant achievements for policymakers, analysts, shareholders, and company managers regarding the volume of information disclosure. The users' ability and the disclosure quality are also some other factors that should be considered when deciding whether to increase the volume of disclosure.
Bahman Banimahd; Reza Jafari Moafi
Volume 9, Issue 33 , April 2011, , Pages 81-98
Abstract
This study investigates relation between accruals quality and auditor selection in the listed firms of Tehran Stock Exchange (TSE) during a five-year period from 2007 to 2011. Using correlation method and logistic regression technique, the results of this study indicate that client size, management ...
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This study investigates relation between accruals quality and auditor selection in the listed firms of Tehran Stock Exchange (TSE) during a five-year period from 2007 to 2011. Using correlation method and logistic regression technique, the results of this study indicate that client size, management change and accruals quality impact on selection of the big audit firms. The results of this research also revealed that selection of the big audit firms has no relation with financial leverage, profitability and net loss. Research evidence also reveals that audit privatization and competition in audit market increase auditor rotation in the study sample. Also, when accruals quality is low, the probability of the big audit firm's selection is high.
Farokh Barzideh; Zahra Nikkhah Bahrami
Volume 5, Issue 18 , July 2007, , Pages 81-104
Abstract
In this article what studied is perceptive the theory model and quality of this relation and assessing the parts of risk for each management assertion. This article states the results of a study there have assessed the relation between inherent risk and control ...
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In this article what studied is perceptive the theory model and quality of this relation and assessing the parts of risk for each management assertion. This article states the results of a study there have assessed the relation between inherent risk and control risk for any existing assertion in any account two hypotheses are made for this research. In order to test hypothesis, survey and normal distribution were the devices of collecting information. The test was done in 5% mean level. The statistical society of this research was the members of formal accountants' society. The results indicate meaningful relationship between inherent risk and control risk. And the auditors didn't distinct for any existing assertion in any account of inherent risk and control risk in their assessments.
bahman banimahd
Mohammad Jafar Zivari Kamran; Hossien fakhari
Abstract
This paper is intended to provide a pattern for effective internal audit function and to recognize its components. The considered statistical group of this research includes experienced managers in public companies, members of audit committees and managers of auditing firms. This research is a descriptive-probative ...
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This paper is intended to provide a pattern for effective internal audit function and to recognize its components. The considered statistical group of this research includes experienced managers in public companies, members of audit committees and managers of auditing firms. This research is a descriptive-probative one and its purpose is fundamental. Theme analysis method was adopted in order to analyze qualitative data gathered from interviews. Coding process was performed in three separate phases of inputs, processes and outputs. According to results of theme analysis, identified components of an effective internal audit function categorized in Input phase were providing resources and facilities, independence of internal audit, transparency of information system, codified governance system of company, professional competency of employees and human resources policies. Also, components categorized in process phase were risk management, performance assessment, control approaches, promotion of internal auditors' skills, organizational relations and accordance to modern evolutions were recognized. In output phase, identified indicators of an efficient internal audit function were reporting quality, effectiveness of internal control systems and economic efficiency of internal audit activities. Finally, in order to examine the model from beneficiary’s perspective, current status of internal audit function was assessed. The results of single sample T test showed that effectiveness of internal audit is quite low in input phase. On the other hand, effectiveness of internal audit was rather medium favorable in process phase and normal favorable in output phase.
Gholamhossein Asadi; Mariya Yokhneh Alghiaee
Volume 11, Issue 41 , April 2014, , Pages 83-103
Abstract
A great change and shift from financial resources to knowledge is being experienced nowadays. Physical and financial assets are essential but not enough to reach organizational goals, instead, knowledge, technological settings, good customer relations, information systems,... those constitute organization’s ...
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A great change and shift from financial resources to knowledge is being experienced nowadays. Physical and financial assets are essential but not enough to reach organizational goals, instead, knowledge, technological settings, good customer relations, information systems,... those constitute organization’s Intellectual Capital, are known as key success factors in information era. It’s believed that intellectual capital, including human capital and structural capital, has important and growing role in firm’s performance and affects on it’s financial achievements. This paper examines the effect of intellectual capital and it’s components on firm’s financial performance. The essential data are taken from 1383 -1388 fiscal years’ annual reports of publicly traded firms listed on the Tehran stock exchange and 816 firm-years are studied. Results of hypotheses testing show that, VAIC has positive effect on the four financial performance indicators. Between VAIC components, capital employed efficiency has the most effect on firms’ financial performance.
Gholamreza Soleimani Amiri; Narges Goodarzi
Volume 10, Issue 39 , October 2013, , Pages 83-104
Abstract
As the amount of dividend is one of the effective and final factors in investor decision making, dividend policy of companies that decides the amount of dividend, could play a very important role in making decisions. Dividend policy is reciprocally influenced by individual behavioral specifications. ...
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As the amount of dividend is one of the effective and final factors in investor decision making, dividend policy of companies that decides the amount of dividend, could play a very important role in making decisions. Dividend policy is reciprocally influenced by individual behavioral specifications. These specifications have an extensive coverage from which a few has been selected for this study. By measuring limits of patience and loss aversion of shareholders this study is trying to analyze their relations with companies’ dividend policy.The necessary data for trial assumptions, belonging to 77 companies for a period of 5 years between 1386-90, has been collected from Tehran stock exchange data base .the relation between variables have been examined by testing correlation coefficients and multiple regressions. Study shows there is no meaningful relation among percentage of dividend and stockholders patience, based on effecting date of dividend payment measurement and the amount of adjusted earnings per share measurement of companies accepted in Tehran stock exchange. On the other hand relation between dividend ratio percentage and measurement of companies profit growth is meaningful but to the contrary. So based on index of companies profit growth, a meaningful relation exists between payable dividend policy and loss aversion of shareholders. According to the market risk measurement, has no meaningful relation between loss aversion and dividend policy. Dividend Policy, Behavioral Finance, Patient Shareholders, Loss Averse Shareholders. Assistant
Hamid Khaleghi Moghoddam; Farokh Barzideh
Volume 1, Issue 2 , July 2003, , Pages 83-106
Abstract
With regard to the goals (efficiency) and objectives (effectiveness) the performance of entities is measured.
Therefore, measuring performance can be considered proper criteria showing the achievement of goals and objectives. This paper enables the firms, all kind to determine how far they have been ...
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With regard to the goals (efficiency) and objectives (effectiveness) the performance of entities is measured.
Therefore, measuring performance can be considered proper criteria showing the achievement of goals and objectives. This paper enables the firms, all kind to determine how far they have been successful (in achieving the goals and objectives). During the last decades the firms have used different approaches and technics in measuring the performances. But, a very few of them are satisfied with the effectiveness of the process of assessments.
This article tries to compare the results of other approaches with the aim of enabling the users of financial statements make reasonable decisions; it deserves to note that Tehran stock exchange is looking for a reliable measure for assessing the accounting information.
Also in this paper attempts has been made to show there is no realizable relation between the different approaches in measuring the performance of the companies.
Mohsen Khoshtinat; N. O. Rahimian
Volume 2, Issue 6 , July 2004, , Pages 83-112
Abstract
Harmonization means that the differences in national accounting standards should be kept to the minimum. Harmonization accommodates the existence of alternative accounting rules or practices in different countries as long as they are in harmony with each other and can be reconciled. This Article presents ...
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Harmonization means that the differences in national accounting standards should be kept to the minimum. Harmonization accommodates the existence of alternative accounting rules or practices in different countries as long as they are in harmony with each other and can be reconciled. This Article presents rational and pressure for Harmonization, Obstacles to harmonization and introduces many organizations and entities are involved in the process of harmonizing accounting standards.
Rezvan Hejazi; Mahboobe Fatemi
Volume 3, Issue 12 , January 2006, , Pages 83-111
Abstract
Accounting information in order to be effective in decision making, should be relevance and reliable. On the other hand, the usefulness of the financial statements information depend on explanatory and predictive power of companies value and the latter is directly affected by current and future ...
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Accounting information in order to be effective in decision making, should be relevance and reliable. On the other hand, the usefulness of the financial statements information depend on explanatory and predictive power of companies value and the latter is directly affected by current and future returns .Therefore , this study aims at investigating predicting stock returns using financial ratios.
The four ratios driven of research literature include earning to price, book to price, sales to price and dividend to price ratios.
The statistical population taking part in this study includes the Accepted companies in Tehran securities exchange and a sample of 72 companies in different industries during 1378-1383.
The results show that in relating to variables investigated, there is the greatest explanatory power between book to price ratio and stock returns and Earning to price ratio has not meaningful relation with the future stock returns.
Keywords: Stock return, earning to price ratio, book to price ratio, sales to price ratio, dividend to price ratio.
F. Mehrvarz; M. Marfou
Abstract
AbstractThe present research deals with explaining the relationship betweenfinancial statements comparability and the stock price informativeness regarding the future earnings as well as explaining therole of the financial statements comparability in reflecting the firm’sspecific future earnings ...
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AbstractThe present research deals with explaining the relationship betweenfinancial statements comparability and the stock price informativeness regarding the future earnings as well as explaining therole of the financial statements comparability in reflecting the firm’sspecific future earnings data and reflecting the future earnings datarelevant to the industry in the stock price of the current period. Thetime period of this research for the 4-year has been considered fromthe beginning of 1386 till the end of 1389. However, data from 1383to 1386 and 1390 to 1392 is also used to calculate some variables. Theresearch sample consists of 85 listed firms in Tehran Stock Exchange.The multivariate regressions have been used for the statisticalanalysis. Four control variables-size, growth, loss and earningsvolatility-have been used. According to the accomplished tests there isno positive relation between the financial statements comparabilityand the stock price in formativeness. The financial statementscomparability does not contribute in reflecting the future earnings datarelevant to the industry and reflecting the firm’s specific futureearnings data in the stock price of the current period
Farrokh Barzideh; Sasan Allahgholi
Volume 6, Issue 21 , April 2008, , Pages 83-107
Abstract
This study compares returns from using two different strategies technical analysis and Buy-Hold strategy- of investment in Iranian capital market. For this purpose, we calculate the returns from active strategy arising from Bollinger Bands and Relative Strength Index (RSI) model and compare with ...
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This study compares returns from using two different strategies technical analysis and Buy-Hold strategy- of investment in Iranian capital market. For this purpose, we calculate the returns from active strategy arising from Bollinger Bands and Relative Strength Index (RSI) model and compare with the return from using the Buy-Hold as a passive strategy, for the period of 1376-1386.
Our results show that during of our study period, the returns from active strategy by using Bollinger Bands and Relative Strength Index (RSI) model do not exceed the return from using the Buy-Hold as a passive strategy in the TSE. However, Bollinger Bands and Relative Strength Index (RSI) model has a lower return variance relative to Buy-Hold strategy. Therefore, in point of view of risk, the active strategy is more advantageous than the passive strategy.
ali rahmani
Abstract
Considering the importance of discretionary accruals in reporting and its influenceon stock return, and also growth opportunities and information assymetry in highgrowth companies, it is expected that management of high growth companies haveincentives to use discretionary accruals for signaling positive ...
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Considering the importance of discretionary accruals in reporting and its influenceon stock return, and also growth opportunities and information assymetry in highgrowth companies, it is expected that management of high growth companies haveincentives to use discretionary accruals for signaling positive fiture performance ofthe firm. The purpose of this study is to investigate the impact of growth changes onstock return sensitivity to discretionary accruals, positive accruals and the quality ofaccruals. The study is performed in TSE listed companies and 192 companies databetween 1388 to 1394 were selected. The coefficient and multivariate regressionwere used for hypothesis testing. The results revealed that the sensitivity of stockreturn to discretionary and positive accruals and accruals quality is high for highgrowth companies compared to low growth ones.
Masoud Taheri; naser izadinia; Rozita Moayedfar
Abstract
The design of the audit program so that it can be used to adequately respond the fraud risk is one of the most important activities that auditors do in their investigations. Paying attention to the most important dimensions and risk factors of fraud can help auditors in this process. In this regard, ...
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The design of the audit program so that it can be used to adequately respond the fraud risk is one of the most important activities that auditors do in their investigations. Paying attention to the most important dimensions and risk factors of fraud can help auditors in this process. In this regard, in this research, the importance of the dimensions and risk factors of fraud in the adjustment of the audit program has been investigated. For this purpose, the fraud Pentagon model has been used. This model includes five dimensions of pressure/motivation, opportunity, rationalization, capability and arrogance. In order to conduct this research, four fraud risk factors were selected by expert opinion for each of the five fraud dimensions. A questionnaire was used to collect data. The statistical population of the study is Iranian association of certified public accountants in year 2018. After distributing and collecting questionnaires, the Fuzzy Analytical Hierarchy Process (FAHP) method was used to rank the dimensions and risk factors of fraud. The results show that opportunity dimension and fraud risk factors including significant portions of managers’ compensation being contingent upon operating results, financial position, or cash flow, ineffective information, accounting and internal controls systems, restrictions on the auditors’ investigation, level of experience and overconfidence have the highest degree of importance in modifying the audit program
Mohammad Hossein Setayesh; Mostafa Kazemnezhad
Abstract
The Purpose of this research is investigating the usefulness of variables (dimension) reduction methods (selection and extraction) in stock returns of the companies listed on Tehran Stock Exchange (TSE). In this regard, through reviewing literature, 52 predictive features (variables) were specified as ...
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The Purpose of this research is investigating the usefulness of variables (dimension) reduction methods (selection and extraction) in stock returns of the companies listed on Tehran Stock Exchange (TSE). In this regard, through reviewing literature, 52 predictive features (variables) were specified as the initial features based on the popularity in the literature and the availability of the necessary data. By using variables selection (relief) and variables extraction (factor analysis) methods, optimal variables (factors) are selected or extracted from initial variables. Subsequently, the stock returns of 101 firms listed on TSE from 2004 to 2013 were predicted utilizing decision tree and linear regression. The experimental results confirmed the usefulness of variables (dimension) reduction methods in stock return prediction and better performance of relief (relative to factor analysis). Furthermore, the results indicated that decision tree outperforms the linear regression.
Seyyed Majid Shari'at Panahi
Volume 1, Issue 1 , April 2003, , Pages 85-108
