The Impact of Accounting Comparability and Consistency on Earning Quality: A Text-Mining Approach
sobhan
zafari
islamic azad university of isfahan
author
darioush
foroughi
isfahan university
author
gholamhossein
kiani
isfahan university
author
text
article
2019
per
The emergence of an accrual basis in the preparation of financial statements and the measurement of Accounting Earnings has led to the creation of quantitative, empirical and substantive research into the Earning Quality. Despite the extensive and contradictory research on the quality of earnings in the capital market, the issue of earning quality is still one of the most important issues of interest to market researchers. Some earnings research of the last decade has tended to use a qualitative approach such as text mining to provide a new measure of earnings quality. Therefore, the purpose of the present study is to investigate the impact of comparability and consistency of accounting practice on earnings quality with emphasis on qualitative text mining approach in order to provide a valid qualitative measure for evaluate earnings quality.The statistical population of the research is the companies listed in Tehran Stock Exchange .The study sample consisted of 90 companies in the period 2012-2109. was used Multivariate regression analysis to test the research hypotheses. Earnings quality in the present study was measured based on the quality of the company's accruals. Also, text mining technique (vector space model) was used to measure the consistency of accounting procedures. The results and findings of the study show that accounting comparability has a positive effect on earnings quality. The research findings and findings also confirm that by increasing the accounting consistency, the quality of the firm's earnings also increases. Key-words: accounting comparability,accounting consistency,Accrual Quality,text-mining,earning quality
Empirical Studies in Financial Accounting
Allameh Tabataba’i University
2821-0166
16
v.
64
no.
2019
1
30
https://qjma.atu.ac.ir/article_10954_ae40f1a6221c62313101c4a4b39899a4.pdf
dx.doi.org/10.22054/qjma.2019.34708.1860
A Study of Factors Affecting Readability of the Audit Report: A linguistic Approach
mohamad reaza
abbaszadeh
Ferdowsi University of Mashhad
author
Mahdi
Salehi
Ferdowsi university of Mashhad
author
farhad
nasimtoosi
Ferdowsi University of Mashhad
author
text
article
2019
per
Readability is the ease with which a reader can understand a written text. Audit report is a message about validity of financial statements that auditors transmit to the users. It is expected that the readability of the audit report plays an important role in understanding it by users. Therefore, the present paper aims to examine the factors affecting on readability of the audit report. To this end, the readability of 1202 audit reports belong to 2011 to 2016 (after revision in the Audit Standard 700 on 2011), using Gunning Fog Index is measured, Then the impact of the auditor's characteristics and Client's characteristics on Audit report Readability by Fuzzy Decision Tree, Ancova And step-by-step regression is studied. The results showed that, firstly, the readability of the audit reports varies with each other. Secondly, the readability of the audit reports is influenced by the auditor's characteristics and Client's characteristics. Third, most important variables determining readability of the audit report are the Auditor's Size (negative effect), auditing consolidted/not consolidted financial Statement (Consolidated one is less readable), size of the Client (negative effect), ratio of market to book value of Client (Positive effect) and Auditor's Report Type (adjusted report is less Readable). Fourth, audit report delay will reduce readability.
Empirical Studies in Financial Accounting
Allameh Tabataba’i University
2821-0166
16
v.
64
no.
2019
31
57
https://qjma.atu.ac.ir/article_10955_6e5d1d2050f046a07ebf3eba02b762f0.pdf
dx.doi.org/10.22054/qjma.2020.30865.1775
The Effect of Fair Value Approach on Performance Indicators of Small and Medium Sized Investment Companies
Roohalah
Seddighi
Allameh Tabataba'i University
author
Mohammad
Marfou
Allameh Tabataba'i University
author
Ali
Ghasemi
Allameh Tabataba’i University
author
text
article
2019
per
International Financial Reporting Standards for Small and Medium Sized Entities (IFRS For SMEs) is a set that has less requirements than international financial reporting standards. Small and medium enterprises are being adopted in many countries and these standards are under consideration in Iran. It is necessary that this set of standards be examined before application. In the present study, by using the fair value approach in SME reporting standards, the impact of this approach on the performance indicators based of SME-standards has been investigated. The main purpose of this study is to investigate changes in performance indicators after applying SMEs standards.The statistical population of this research is the subsidiry companies of the public companies whose activities are investment and 95 companies selected as sample. The research period is 2015 to 2017. Therefore, using historical data in the audited financial statements of these companies and the fair value of the investment portfolio of these companies based on the trading portfolio and the report on the status of the portfolio in the codal website, changes in return on assets ratio (ROA) and return on equity ratio (ROE) as performance indicators, is evaluated statistically after applying the fair value approach and compared with the indicators based on Iran's accounting standard. The results indicated that the ratio of return on assets and return on equity as performance indicators, after the implementation of the International Financial Reporting Standard for small and medium sized entities did not change significantly.
Empirical Studies in Financial Accounting
Allameh Tabataba’i University
2821-0166
16
v.
64
no.
2019
59
80
https://qjma.atu.ac.ir/article_10956_a48259999f47696d5ab086352f017c3b.pdf
dx.doi.org/10.22054/qjma.2020.42605.2023
Providing a Pattern for Effective Internal Audit from Beneficiary’s Perspective
Mohammad Jafar
Zivari Kamran
Ph.D Student of Accounting, University of Mazandaran, Babolsar, Iran
author
Hossien
fakhari
Asociate Professor-university of Mazandaran
author
text
article
2019
per
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.
Empirical Studies in Financial Accounting
Allameh Tabataba’i University
2821-0166
16
v.
64
no.
2019
81
111
https://qjma.atu.ac.ir/article_10957_045213cb4723f2d1fcbaf0b4911be8a3.pdf
dx.doi.org/10.22054/qjma.2020.42676.2019
The Impact of Banking Performance on Liquidity Creation in Banking System
fateme
rezazadeh karsalarei
Ph.D. Candidate, Department of Economics, Faculty of Economic, Shahid Chamran University, Ahwaz, Iran.
author
mostafa
sargolzaee
associate professor - allameh tabatabai university
author
text
article
2019
per
In today's world, the banking industry plays a decisive role in the development and economic growth of countries due to its diverse financial and credit services, and can be considered as a driving force, an accelerator, and a balanced economy. Since the efficiency of each system is evaluated according to the efficiency of that system, the efficiency of the banking system is also measured through its return on equity holders and depositors. The more profitable the banks are, the more trustworthy the customers show than the banks, and they still keep their savings with the banks. The purpose of this paper is to examine the relation between the performance and the nature of banks' liquidity. To achieve this goal, data from 18 banks during 2009-2017 and using general momentary method (GMM) have been used. In this study, studied to calculate the liquidity index in the banking system, and emphasizing the structure of the balance sheet of the country's banking network. The results show the bank’s performance has a positive and significant effect with the creation of liquidity. Other results also show that the rate of economic growth, the ratio of capital to assets and the inflation rate have positive effects and Z-score has a negative effect on liquidity creation of banks.
Empirical Studies in Financial Accounting
Allameh Tabataba’i University
2821-0166
16
v.
64
no.
2019
113
133
https://qjma.atu.ac.ir/article_10958_5f04cc2fa384949f3cf8d44b9b3820e8.pdf
dx.doi.org/10.22054/qjma.2020.42572.2006
Predicting the Financial Status of Companies Using Content Analysis the Reports of the Board of Directors
Jamal
Barzegari Khanagha
Department of Accounting and Finance- Faculty of Economics, Management and Accounting,Yazd University, Yazd, Iran
author
habib
ansari samani
Faculty Member of Yazd University.
author
lida
razzazzadeh
yazd university
author
text
article
2019
per
Severe economic fluctuations and adverse consequences for investors. The need for predictive models has made corporate finance necessary. In this regard, This research is intended by examining the relationship between financial ratios and the content of the board's reports open a new way to predict company status. For this purpose, were extracted frequency of words and phrases with positive and negative semantic load using the word extraction algorithm, From the text of the board's reports 219 non helpless companies and 81 helpless companies. Results of regression estimation positive and negative words ratio on financial performance indicators, shows in companies with financial health, negative words have a significant relationship with functional criteria. Evidence showed in these companies, managers are not trying to hide their financial crisis. The results for the helpless companies were different In general, there was no meaningful relationship between the words with the performance indicators of these companies. It looks like this group of companies by confusing the, they try to prevent to selling from their shares by stakeholders.
Empirical Studies in Financial Accounting
Allameh Tabataba’i University
2821-0166
16
v.
64
no.
2019
135
160
https://qjma.atu.ac.ir/article_10959_4f1b7ee54d64397bff5ede44753a10dc.pdf
dx.doi.org/10.22054/qjma.2020.27663.1718
Analyzing the Relationship between Earnings Attributes, Earnings Beta, Earnings Volatility and Return Downside Risk measures with Earnings Downside Risk
mahnam
molaei
Department of Accounting, Faculty of Administrative & Economics, university of Isfahan, Isfahan, Iran
author
naser
izadinia
department of Accounting, Faculty of Administrative & Economics, university of Isfahan, Isfahan, Iran
author
hadi
Amiri
Department of economics, Faculty of Administrative & Economics, university of Isfahan, Isfahan, Iran
author
text
article
2019
per
The purpose of this study is to investigate the information content of a new risk measure (earnings downside risk) in financial statement analysis, which is based on the below-expectation variability in earnings. So, the relation between earnings attributes, earnings beta, earnings volatility, return downside risk and negative skewness of stock return with earnings downside risk were examined. Five main hypotheses and seven sub-hypotheses were defined and data were analyzed for 91 companies members of Tehran stock exchange of the period from 2000 to 2014. The research regression model was tested using panel data method. The results of research show that accruals quality, persistence, predictability, smoothing, timeliness, earnings beta, earnings volatility, return downside risk and negative skewness of stock return have a significant relation with the earnings downside risk. Therefore, it can be calculated that information on this risk measures falls in the earnings downside risk. Relevance and conservatism variables, although in regression analysis did not have a significant relation with the earnings downside risk along with other risk factors, but in the correlation analysis, there is a significant and negative relationship with the earnings downside risk.
Empirical Studies in Financial Accounting
Allameh Tabataba’i University
2821-0166
16
v.
64
no.
2019
161
193
https://qjma.atu.ac.ir/article_10960_a9810348105ec9716c327bebb67e2364.pdf
dx.doi.org/10.22054/qjma.2020.34801.1862