Accounting report
Fahime Ebrahimi; Mohammad Hosein Setayesh; Hamidreza Zareifard
Abstract
Prospect theory explains how individuals’ feelings and preferences influence their decision-making. The purpose of this research was to investigate earnings manipulation incentives within companies listed in Tehran Stock Exchange using fourfold pattern of risk attitudes provided by the cumulative ...
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Prospect theory explains how individuals’ feelings and preferences influence their decision-making. The purpose of this research was to investigate earnings manipulation incentives within companies listed in Tehran Stock Exchange using fourfold pattern of risk attitudes provided by the cumulative prospect theory. The period of this research was 6 years, from 2013 to 2018 and included 695 observations. Hypothesis testing using logistic regression, with the average competitor performance within the industry as the reference point, revealed a significant positive (vs. negative) effect of management’s loss (vs. gain) estimates relative to the reference point on earnings manipulation. In other words, when management’s estimate of the likelihood of loss relative to the reference point is high (vs. low), the likelihood of earnings manipulation increases (vs. decreases). Furthermore, when management’s estimate of the likelihood of gain relative to the reference point is low (vs. high), the likelihood of earnings manipulation increases (vs. decreases). The findings of research also provided evidence for loss-aversion among managers. Therefore, the evidence suggests that the cumulative prospect theory can be utilized to explain managerial incentives for earnings manipulation.
Mohamad hossein Ghaemi; Taher Eskandarli
Volume 10, Issue 40 , January 2014, , Pages 53-75
Abstract
This paper studies the behavior of managers in annual Earnings Forecasts. According to SEC regulations, annual earnings forecasts for companies listed in Tehran the Stock Exchange are mandated but manager have considerable latitude over the numbers they release. In this study has been investigated the ...
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This paper studies the behavior of managers in annual Earnings Forecasts. According to SEC regulations, annual earnings forecasts for companies listed in Tehran the Stock Exchange are mandated but manager have considerable latitude over the numbers they release. In this study has been investigated the management bias in annual earnings forecast and effect of the three-variable: past performance, management approach in last year's forecast earnings, and type of ownership of listed companies in Tehran Stock Exchange. In this study Management bias is measured by using two criteria, forecast innovation and forecast errors. The sample includes the 1135announcements of annual earnings forecasts during the period 1386-1390 (Iranian Calendar). The analysis performed shows, managers initial forecast optimism is inversely related to firm performance, and is more pronounced for firms with higher levels ownership, and with a history of forecast optimism.
mousa Bozorge Asl; Amir Abbas Sahebgharani
Volume 10, Issue 38 , July 2013, , Pages 53-67
Abstract
Momentum strategies which are widely use as a transaction strategy and portfolio management shows the continuation of recent trend of stock prices and beliefs that recent trend will be continued in future. These strategies are in contrast with EMH even in the weak form and are considered as Technical ...
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Momentum strategies which are widely use as a transaction strategy and portfolio management shows the continuation of recent trend of stock prices and beliefs that recent trend will be continued in future. These strategies are in contrast with EMH even in the weak form and are considered as Technical Anomalies.In this research, using financial performance of the companies, we attempted to prove that the industries who achieve more profitability comparing their predictions, continue to this approach in the near future. Toward this goal, the research was performed using a sample consisting of companies listed in Tehran Stock Exchange(TSE) for the period of 1385 to 1390,and also with use of simulated portfolios based on the variables of standardized unexpected earnings (SUE) and abnormal return (ABR) in accordance with each industry, evaluation profitability, reasons, factors and the relevance between these phenomena.Results indicate that by investigating of momentum strategies according to different industries, abnormal return can be gained and the extent of the relationship between these phenomena is lessened over time and will fade away in a time horizon of one year.
A ansari; N kamali kermani; A talebi najaf abadi
Volume 9, Issue 36 , January 2012, , Pages 53-73
Abstract
Failure of audit reports has recently leaded to fundamental criticisms toward auditing profession and the magnifying of profession defects (in order to stakeholders’ value protection). In this field, auditor not only intrinsically should be independent, , but also they should seem independent in ...
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Failure of audit reports has recently leaded to fundamental criticisms toward auditing profession and the magnifying of profession defects (in order to stakeholders’ value protection). In this field, auditor not only intrinsically should be independent, , but also they should seem independent in auditing and attesting about financial statements. Considering the importance of independence, this paper simultaneous investigates the influence of performing audit and non-audit services on auditor independence. Also, the influence of non-audit services and a reliable organization supervision on simultaneous performing of audit and non-audit services and also auditing separation of duties on independence has been studied. Questionnaire tool was used for gathering required data and questionnaires were distributed between academics and stock analyzers. For gathering information from questionnaire, in which Likert spectrum was used for analysis, and testing hypotheses, proportion test and Minitab software were used. Research findings reveal that if audit and non-audit services were performed by two different groups of auditors, or if they were performed under supervision of a reliable supervisory organization, the impairment of auditor independence won't happen and the level of non-audit services and also the simultaneous performance of audit and non-audit services has no effect on auditor independence.
M.H. Setayesh0F; M. Ebrahimi Maimand1F
Abstract
Today companies try to say that they are a good investment choice and Attempt to improve firm value by disclosure of information. In this study relationship between ownership by different types of institutional investors - including Dedicated, Quasi-Indexing and Transient institutions - and disclosure ...
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Today companies try to say that they are a good investment choice and Attempt to improve firm value by disclosure of information. In this study relationship between ownership by different types of institutional investors - including Dedicated, Quasi-Indexing and Transient institutions - and disclosure quality, is examined. For this purpose data from 103 companies listed in Tehran Stock Exchange for period of 2007 to 2012 was analyzed using the logistic regression model. Companies’ score for disclosure, issued by Security and Exchange Organization, is used to measure the disclosure quality. Results show that quality of disclosure is different for companies owned by different types of institutions. Results show that there is direct and significant relationship between ownership by dedicated institutions and quality of disclosure, and ownership by Transient institutions and quality of disclosure are in an indirect significant relationship. Also there were no significant relationship between Quasi-indexing institutions and quality of disclosure
M. H. Ebrahimi Sarveolia; J. Jahanshahi
Abstract
In capital market, Investors, decision process is affected by acombination of financial and nonfinancial information, but theinformation that companies disclose to capital market, focusses onfinancial aspects and includes less information about intangible items.Thus, in addition to financial information, ...
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In capital market, Investors, decision process is affected by acombination of financial and nonfinancial information, but theinformation that companies disclose to capital market, focusses onfinancial aspects and includes less information about intangible items.Thus, in addition to financial information, investors need moreinformation about the intangible factors that affect stock prices.Intellectual capital is one of those intangible factors. Therefore, thisstudy examines the impact of intellectual capital on decision makingprocess of investors of firms listed in Tehran Stock Exchange. Thestatistical population of the research is 140 comprised of listedcompanies in Tehran Stock Exchange and the research period is theyears during 2009 to 2013. In this research, for data analysis, paneldata has been used. Also, control variables are the size of the companyand the ratio of market value to book value of equity. The resultsshowed that there is positive significant relationship betweenintellectual capital and both EPS and β, and negative significantrelationship between the intellectual capital and P/E.
M. Azizkhani; N. Khodadadi
Volume 6, Issue 24 , January 2009, , Pages 53-78
Abstract
This paper examines the effects of advertising expenditures on firm's intangible value in the Tehran Stock Exchange (TSE) listed companies. Using Q Tobin to estimate firm's intangible value and for a sample of 389 firm-year observation during 1380-1385, we find that there is a negative ...
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This paper examines the effects of advertising expenditures on firm's intangible value in the Tehran Stock Exchange (TSE) listed companies. Using Q Tobin to estimate firm's intangible value and for a sample of 389 firm-year observation during 1380-1385, we find that there is a negative association between firm's advertising expenditures and intangible value. We also find that there is no association between advertising expenditure, sales and profit.
Nahid Feizabadi Farahani; mohammad ali dehghan dehnavi; Yahya Hassas Yeganeh; Meysam Amiri
Abstract
Given the high volume of insurance industry turnover, the role of the capital of insurance companies and their number in the stock exchange is very important. Since the investors' goal of investing in each company is to generate returns in line with their investment, if the company contributes to the ...
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Given the high volume of insurance industry turnover, the role of the capital of insurance companies and their number in the stock exchange is very important. Since the investors' goal of investing in each company is to generate returns in line with their investment, if the company contributes to the creation of value, Success will benefit not only the homeowners of the company but also the wider community. The purpose of the present research is to evaluate the variables affecting the performance of insurance companies using the fuzzy ANP technique. The statistical population of this study includes all active members of insurance companies active in the stock exchange and OTC, as well as experts of Tehran Stock Exchange. In this research, we tried to select the majority of experts in the Insurance Organization and some of the managers of insurance companies, and the sample size is 35 people using the Cochran formula. After analyzing, using a specific fuzzy ANP technique Which ranked first in terms of capital productivity, then asset quality, liabilities, liquidity, management quality, market risk sensitivity, profitability, operational efficiency, and capital structure and capital adequacy
F Barzideh; A Shahriari
Volume 9, Issue 34 , July 2012, , Pages 55-75
Abstract
In this paper the functional fixation hypothesis is tested from investors’ viewpoint of net operating assets (bloated balance sheet phenomena). The study is at firm level in Tehran Stock Exchange using the data of 153 firms for 7 years (1382- 1389). The functional fixation hypothesis states that ...
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In this paper the functional fixation hypothesis is tested from investors’ viewpoint of net operating assets (bloated balance sheet phenomena). The study is at firm level in Tehran Stock Exchange using the data of 153 firms for 7 years (1382- 1389). The functional fixation hypothesis states that If investors with limited attention focus on accounting profitability, and neglect information about cash profitability, then net operating assets, the cumulative difference between operating income and free cash flow, measures the extent to which reporting outcomes provoke over-optimism. Our findings from Univariate and Multivariate regressions show that the hypothesis is accepted based on multivariate test and is rejected based on univariate test. These findings show that with control variables consideration bloated balance sheet affect investor decision process in Iran, too.
Majid Shariat Panahi; E. Heydari Nia
Volume 2, Issue 6 , July 2004, , Pages 55-82
Yahya Hassas Yeganeh; Ruhollah Rajabi
Volume 2, Issue 8 , January 2005, , Pages 55-86
Abstract
A wide range of theories and hypotheses positively or normatively have justified the need for presences of audit process as a monitoring body for reassuring financial information provided to the public. There is a consensus that the audit function should be performed in a professional framework. Nowadays ...
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A wide range of theories and hypotheses positively or normatively have justified the need for presences of audit process as a monitoring body for reassuring financial information provided to the public. There is a consensus that the audit function should be performed in a professional framework. Nowadays this function in most countries is performed by audit profession as a society whole agent. Auditors act in the interest of primary stakeholders, whilst having regard to the wider public interest. . Effectiveness of audit function strongly depends on professional power of auditors. Professional power provides auditor the ability to influence clients' behavior regarding financial reporting to comply with Generally Accepted Accounting Standards, otherwise ability to disclose disagreements and other reportable conditions in their audit reports. As a result this ability helps auditors serving public interest. Professional power supports auditor resolving conflicts between them and their clients regarding proper accounting treatment, presentation, disclosure, etc. The main objectives of this research was to recognizing some aspects of professional power of independent audit in Iran, factors affecting professional power and appraisal of audit profession practitioners of factors current situation. Research finding show that professional power affects from wide range of factors and practitioners are not satisfied with current situation of them. Finally based on research findings some suggestions have been made both for application and future researches.
Mohsen Khoshtinat; Z. Namazi
Volume 2, Issue 7 , October 2004, , Pages 55-76
Abstract
In time past many ratios such as current ratio and quick ratio had been used for evaluations of corporation liquidity authority and ability in debt repayment.
But in recent years because of some deficiency and defection of these two ratios some other ratios such as liquidity index, cash comprehensive ...
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In time past many ratios such as current ratio and quick ratio had been used for evaluations of corporation liquidity authority and ability in debt repayment.
But in recent years because of some deficiency and defection of these two ratios some other ratios such as liquidity index, cash comprehensive liquidity index, net liquidity index, cash conversion cycle, lambda and etc. have been presented.
In this essay in addition to presentation of these modern ratios via calculation of modern ratio correlation with traditional ratios, we will discuss to some extent the informational identify of them. For this reason all active corporation in food industry of negotiable papers exchange have been chosen and ratios for a period of 5 year (1377-1381) have been calculated and the correlation of them have been calculated by SPSS(a software).
The results of this research show that although the ratios have a near relationship with traditional ratios but they are some differences that can play an important role on our decision and they contain various and more information than traditional ratios and can help users to make their decision better than before.
saber sheri
Zahra Dianati Deylami; Amir Alam Baigi; Morteza Barzegar
Abstract
Today, in many countries, particularly the developing countries, economic reform, such as privatization, is considered a strategic approach. The more governments grow, the tighter the competitions become in the market, so, it appears that some fields should be privatized in order to create ...
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Today, in many countries, particularly the developing countries, economic reform, such as privatization, is considered a strategic approach. The more governments grow, the tighter the competitions become in the market, so, it appears that some fields should be privatized in order to create competition. By moving towardsprivatization and the changes in competition methods and the presentation of the World Trade, the importance of management accounting is more pronounced. This research is based on the Contingency Theory of Anderson and Lenan (1999) and it investigates the relation of the level of privatization on the performance of privatized companies with emphasis on the use of management accounting tools as anintermediary variable. The data, related to management accounting tools and used by the companies during 6 years, was collected through questionnaires and the data related to privatization and financial performance was collected using the information registered in the statements of 48 accepted companies on Tehran’sStock Market whose dates of acceptance are before 1387 and were continuously active until 1392. This data was analyzed by PLS 2014. The results indicate a positive relation between financial performance and privatization, and management accounting, as an intermediary variable, enhances this relation. Furthermore, the use of management accounting tools has a positive relation with the financial performance and the privatization of companies.
Shokrolah Khajavi; Ahmad Shokrollahi
Abstract
The interaction of managerial ownership and corporate performance in accordance with their endogenous nature is studied in this research. In other words, interrelations of mentioned variables along with some relevant variables of using three stage simultaneous equations and panel data are inquired. To ...
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The interaction of managerial ownership and corporate performance in accordance with their endogenous nature is studied in this research. In other words, interrelations of mentioned variables along with some relevant variables of using three stage simultaneous equations and panel data are inquired. To do this, quasi-research method is used for 134 listed companies of Tehran Stock Exchange during period of 1380 to 1389. Results of testing research hypotheses indicate positive significant effectiveness of performance on managerial ownership. The most important factors of making managerial ownership which lead to better performance are considered as bonus shares of management bonus plan and information asymmetry problem. Moreover, results of research do not confirm performance effectiveness from managerial ownership. Thus, research findings do not verify this predicate that “due to coordination of management and tockholders’ interests increasing managerial ownership causes agency expenses decreases and increases in stockholders’ interests
Mohammad reza Nikbakht; Amir Firooznia; Hamid Kalhornia
Abstract
In this research, the relationship between earnings to stock per price ratio (E / P ratio) with sales future growth and stocks systematic risk in listed companies in Tehran Stock Exchange is investigated. The purpose of the research is to determine whether investors are paying attention to the quality ...
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In this research, the relationship between earnings to stock per price ratio (E / P ratio) with sales future growth and stocks systematic risk in listed companies in Tehran Stock Exchange is investigated. The purpose of the research is to determine whether investors are paying attention to the quality of information presented (earnings per share), and reflects this on corporate future sales growth and the systematic risk of stocks. It also examines whether there is a meaningful relationship between E / P ratio and future sales growth. The sample of this research includes 146 listed companies in Tehran Stock Exchange during the period of 2011-2016. The linear regression model was used to test the hypotheses. The research findings show that there is a negative relationship between earnings per share (E / P) and future sales growth. In fact, companies that have a higher profit / share / E / P ratio have lower sales growth. Also, the results of the research show that there is a reverse relationship between profit to share price (E / P) and systematic risk (β). In fact, in companies with an E / P ratio, the systematic risk (β) was lower. Other research findings show that there is a positive relationship between earnings per share (EPS) and future sales growth. The results also indicate an inverse relationship between earnings per share (EPS) and systematic risk (β).
Ghodratollah Nikzad Chaleshtori; Mehdi Arabsalehi; Daryush Foroghi
Abstract
A review of the accounting theoretical literature confirms the role of CEO human capital as a valuable intangible asset for the company. The purpose of this study is to determine the effective criteria on the CEO human capital and to explain a comprehensive and multi-criteria model for measuring the ...
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A review of the accounting theoretical literature confirms the role of CEO human capital as a valuable intangible asset for the company. The purpose of this study is to determine the effective criteria on the CEO human capital and to explain a comprehensive and multi-criteria model for measuring the CEO human capital and evaluate the impact of the CEO human capital on the Earnings Forecasts Quality. For this purpose, firstly, the CEO human capital criteria were identified and experts' opinions regarding the weight of each of these criteria collected through a questionnaire and explained using the Shannon entropy technique of comprehensive CEO human capital model. Then, using the proposed model, the CEO human capital index was calculated for a sample of 70 the firms listed on the TSE during the period 2012-2017 and the impact of CEO human capital on Earnings Forecasts Quality was tested by estimating the regression model. The results show that Education level, work experience and industry-related field are important criteria of CEO human capital from the experts' point of view. Also, the results of the analysis of the research hypothesis showed that the improvement of the CEO human capital index has a positive effect on the horizon of earning forecast and reduces the bias of earning forecast. While the impact of the CEO human capital on the error of earning forecast and the range of earning forecast was not confirmed .
Ahmad Badri; Neda Goodarzi
Volume 11, Issue 43 , October 2014, , Pages 57-88
Abstract
Abstract
Individuals are thought to make biased judgments under uncertainty, because limited time and cognitive resources lead them to apply heuristics like representativeness. Representativeness is the tendency of individuals to classify things into discrete groups based on similar characteristics.
In ...
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Abstract
Individuals are thought to make biased judgments under uncertainty, because limited time and cognitive resources lead them to apply heuristics like representativeness. Representativeness is the tendency of individuals to classify things into discrete groups based on similar characteristics.
In order to measure the representativeness bias, we examine the relation between past trends and sequences in financial performance and future returns in Tehran stock exchange (TSE) between1380-1390. We also investigate the impact of consistent sequence of financial performance in future return. Finally, the study examines the effect of subsequent performance that confirms or contradicts past pattern of growth on the predictability of future returns. The study uses annual data consisted of 800 firms-year and 3200 firms-quarter. The main research methodology is portfolio study. This study calculates financial growth rates over two periods: one year (four rolling quarters) and five years (using annual data). Three accounting measures of performance are calculated: sales, net income, and operating income.
The results indicate that the abnormal returns in one-year trend are significantly positive. But abnormal returns in the year after five years of high or low growth are statistically and economically insignificant. In addition, we find little evidence about the consistency or pattern of firm performance effects on expectations of future returns. Finally, the past trend and pattern of growth do not lead to predictable returns following subsequent performance that confirms or contradicts this past trend.
Ghasem Blue; Mahdi Falah Barandagh
Volume 10, Issue 39 , October 2013, , Pages 57-82
Abstract
This research follow up the relation between conservatism and short term abnormal returns of IPOs in Tehran Stock Exchange and also infusing of asymmetry information among beneficiaries in IPO’s procedure in mentioned relation. The results of regression analysis for companies which their stocks ...
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This research follow up the relation between conservatism and short term abnormal returns of IPOs in Tehran Stock Exchange and also infusing of asymmetry information among beneficiaries in IPO’s procedure in mentioned relation. The results of regression analysis for companies which their stocks offered in Tehran Stock Exchange for period of 1382 to 1391 shows the relation between conservatism and short term abnormal returns of IPOs is meaningful and reverse. In the other word by increasing the level of conservatism, verifiability of presented information has been gone up and by decreasing of asymmetry information among beneficiaries in IPO’s procedure; short term abnormal return of this stock will be decrease. In the other hand the relation between conservatism and short term abnormal returns of IPOs in companies with high level of asymmetry information is stronger than companies with low level of asymmetry information.Also the results of research show the IPOs’ stocks have created averagely 26.07% Initial normal returns and 19.61% Initial abnormal returns (Returns adjusted by Market Portfolio) that confirmed the under pricing in Tehran Stock Exchange according to researchers in other countries.
Hamid Khaleghi Mogadam; Mohammad Ali Sahmani Asl
Volume 3, Issue 12 , January 2006, , Pages 57-81
Abstract
The present study identifies the effective accounting and economic variables on P/E ratio in Tehran stock Exchange (TSE) during the 12- year period from 1992 up to 2003. The investigation and identification of accounting information in determining P/E ratio and proper function of the capital market promote ...
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The present study identifies the effective accounting and economic variables on P/E ratio in Tehran stock Exchange (TSE) during the 12- year period from 1992 up to 2003. The investigation and identification of accounting information in determining P/E ratio and proper function of the capital market promote the accounting status in the professional society.
The research is seeking to find out if the economic and corporate variables (accounting variables) can affect the P/E ratio in TSE.
This question is formed into two major hypotheses including:
1) Changes in economic variables affect the corporate PIE ratio, and
2) Accounting variables affect the corporate P/E ratio.
Ex-post multiple factor analysis was applied to test the hypotheses. Furthermore, linear regression, and GEE and TSCSREG statistical instruments were also applied as well as panel Data Analysis.
The research findings indicates P/E ratio is much more affected by accounting variables than economic ones, while there is a strong correlation between the economic variables and corporate PIE ratio in TSE.
Accounting and various aspects of finance
Rafik Baghoomian; Hossein Rajabdorri; amirreza khanizolan
Abstract
The purpose of this study is to investigate the relationship between financial report readability and stock return synchronicity with the moderating role of institutional ownership and information asymmetry in companies listed in the Tehran Stock Exchange (TSE). This research is in terms of its purpose. ...
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The purpose of this study is to investigate the relationship between financial report readability and stock return synchronicity with the moderating role of institutional ownership and information asymmetry in companies listed in the Tehran Stock Exchange (TSE). This research is in terms of its purpose. Its period is from 2015 to 2019, and the selected sample consists of 171 companies listed in TSE. To test the research hypotheses through panel data, the ordinary least squares regression method in Eviews software was used. The findings of the research hypothesis test show that there is a negative and significant relationship between financial report readability and the stock return synchronicity. Also, institutional ownership as a moderating variable negatively correlates the illusion of financial report readability and the synchronization of stock prices. Additionally, the moderating effect of the information asymmetric variables on the relationship between the financial report readability and the price synchronization is positive and significant. According to the findings, on the one hand, it is necessary to examine the implications of financial report readability. On the other hand, in order to improve the market, more attention needs to be paid to the issues affecting the stock return synchronicity.
Accounting and various aspects of finance
Mohammad Ali Aghaei; Mohammad Amri Asrami
Abstract
In this study, the impact of CEO’s overconfidence on the relationship between cash holding and excess returns is investigated in companies listed in Tehran Stock Exchange during the years 2011-2018. For CEO’s overconfidence, overinvestment in assets, and for excess returns, the difference ...
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In this study, the impact of CEO’s overconfidence on the relationship between cash holding and excess returns is investigated in companies listed in Tehran Stock Exchange during the years 2011-2018. For CEO’s overconfidence, overinvestment in assets, and for excess returns, the difference between a firm’s stock return and the return of the firm’s benchmark portfolio over the same period is used. By systematic sampling, a sample of 157 companies is selected, and the models have run based on panel data with fixed effects. The results have shown that (1) cash holding has a positive and significant impact on excess returns, (2) CEO’s overconfidence has a negative and significant impact on excess returns, and lastly, (3) CEO’s overconfidence has a negative and significant impact on the relationship between cash holdings and the excess returns. With increasing CEO’s overconfidence, the excess returns will be reduced. Overconfident managers keep cash at a higher level that leads to overinvestment. It consequently decreases excess returns.
Financial Accounting
Abbas Aflatooni; Zahra Nikbakht; Kefsan Mansouri
Abstract
The existence of firms' excess cash causes resources to stagnate and, cash deficit causes loss of investment opportunities. Therefore, firms generally try to maintain an optimal level of cash holdings. In addition, firms attempt to quickly correct any deviations from the optimal level of cash holdings. ...
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The existence of firms' excess cash causes resources to stagnate and, cash deficit causes loss of investment opportunities. Therefore, firms generally try to maintain an optimal level of cash holdings. In addition, firms attempt to quickly correct any deviations from the optimal level of cash holdings. The level of cash holdings and the speed of correcting the gap between the actual and the optimal level of cash holdings depend on several factors. The purpose of this study is to investigate the effect of the firm's business strategies (defenders and prospectors) on the level of cash holding and its speed of adjustment. In this regard, the data of 120 firms listed on the Tehran Stock Exchange (TSE) during 2013-2020 (960 firm-years) have been used. The static models are estimated using ordinary least squares (OLS) estimator and, the system generalized method of moments estimator (GMM) is used to estimate dynamic models. The results show that the prospectors have a smaller cash holdings ratio than defenders, and also, the prospectors have lower cash holdings speed of adjustment than defenders. The results of supplementary tests that confirm the research's main findings are consistent with the predictions made in trade-off theory.
Hossein Etemadi; Ali Asghar Anvari rostami; Vahid Ahmadian
Volume 11, Issue 41 , April 2014, , Pages 59-81
Abstract
Abstract: The main objective of this study is to investigate the effect of the life cycle of the company's on dividend policy of the company which is accepted on the Tehran Stock Exchange. In this study, the ratio of dividends to the earnings per share and dividends to the company size are considered ...
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Abstract: The main objective of this study is to investigate the effect of the life cycle of the company's on dividend policy of the company which is accepted on the Tehran Stock Exchange. In this study, the ratio of dividends to the earnings per share and dividends to the company size are considered as the dependent variables and life cycle of the company is considered as independent variable. At first a statistical sample is separated by using variables, sales growth, age, and capital expenditure of the company's growth, maturity and decline then hypotheses of the study have been tested by using ANOVA and LSD tests. Analyses of 435 years - the company during the years 1386 to 1390 show that the company's dividend policy at different stages of the life cycle (growth, maturity and decline) differ. The results indicate that the average ratio of dividends to market value of equity of the sample firm's growth, maturity and decline vary. Accordingly, it is recommended to financial analysts to concern life cycle as a key factor when evaluating the current and future performance and financial structure of the company. for doing accurate analysis of financial condition and anticipated interest payments decisions, it is better to determine the company's life cycle.
Mahdi Bahar Moghadam; Mahnaz Salari
Volume 9, Issue 33 , April 2011, , Pages 59-80
Abstract
Abstract
In this study the relationship between accounting depreciation and economic depreciation has been studied. If the equality of accounting depreciation and economic depreciation is demonstrated, it is expected to be a negative and statistically significant relationship between accounting depreciation ...
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Abstract
In this study the relationship between accounting depreciation and economic depreciation has been studied. If the equality of accounting depreciation and economic depreciation is demonstrated, it is expected to be a negative and statistically significant relationship between accounting depreciation and current cash flows. But if there is conservatism in reporting depreciation, the relationship between accounting depreciation and future cash flows is expected to be negative. The reason is that before the economic depreciation of assets occurs; accounting depreciation in financial reports is recognized. Usually companies adopt a more conservative approach, to be able to report better performance in the future. For this research, the multiple regression model and information of companies listed in Tehran Stock Exchange during the period 2001-2010 were used. Results showed that there is no significant relationship between current cash flows and accounting depreciation. It can be argued that accounting depreciation and economic depreciation don’t change proportionately. But the relationship between accounting depreciation and future cash flows is negative and significant. Therefore it can be concluded that there is a conservative approach in reporting depreciation. And finally, in spite of the aforementioned expectations, there is Negative correlation between conservative reporting of depreciation and future growth opportunities.
