Hamid Khaleghi Moghadam; Mahmood Bahramian
Volume 3, Issue 10 , July 2005, Pages 1-28
Abstract
Companies going public in Iran include a forecast of next year's profit in their prospectuses. Investors use this information for their future decision. Accuracy of the forecast is crucial because it seems to be a credible signal for long-term performance of stocks.
In this study we ...
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Companies going public in Iran include a forecast of next year's profit in their prospectuses. Investors use this information for their future decision. Accuracy of the forecast is crucial because it seems to be a credible signal for long-term performance of stocks.
In this study we examine the accuracy of management profits forecasts contained in prospectuses of companies newly listing on the Tehran Stock Exchange. For that reason four different forecast error metrics, forecast error, absolute forecast error, squared forecast error and superiority of management forecast are considered.
The interesting feature in this paper is the mandatory status of Tehran market for the disclosure of earning forecast in the prospectuses of the companies and the motivation is that there is no previous literature covering forecast earning accuracy. Data set consists of 81 IPOs, which were floated, in the Athens Stock Exchange during March 2000 to February of 2002.
In order to test a number of company specific characteristics, for the accuracy of Tehran IPO management earnings forecasts we conduct a regression analysis .We apply a cross sectional model to explain variations in accuracies but it has very weak significant power. Our results suggest that investors are able to anticipate forecast errors at the time of listings. Investigation on independent variables, influencing the forecast accuracy show that three factors named horizon of the IPO' (HOR), Economic Condition (ECON), Age of Firm (AGE) are significant determinants.
Jafar Babajani
Volume 3, Issue 10 , July 2005, Pages 29-72
Abstract
The main purpose 'of this article is to present new and modem tax accounting system that is designed for state tax affairs organization. An organization's operating environment necessarily influences its financial accounting and reporting system. Understanding the fundamental nature of state tax organization ...
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The main purpose 'of this article is to present new and modem tax accounting system that is designed for state tax affairs organization. An organization's operating environment necessarily influences its financial accounting and reporting system. Understanding the fundamental nature of state tax organization as well significant characteristics of its environment was essential for designing a new and more informative tax accounting system. For this reason, the subject has been fully researched by a study group under conducting of the author of this article as the system designer. .
Two significant characteristics of environment were identified in the process of state tax system. First, the taxation process interval that is long and time-consuming. Second, the nature of state tax revenues that is not eligible for using modified accrual basis of accounting became neither measurable nor available. These characteristics of environment highlight the need for providing information of state tax process; in order to provide this kind of information, state tax process was divided into two separated processes namely administration and financial process. The administration process begins at point of submitting tax return and finished at the time of tax payment. The financial process begins with receiving money and sending it to treasury.
The new model of tax accounting system was designed based on fund theory and defined each stage of administration and financial processes as an individual accounting entity by using account group or fund, respectively. In this model of accounting also, accrual basis mechanism is used for recognizing tax receivables and cash basis is used for realizing tax revenues at the time of receiving taxes.
Mohammad Namazi; Javad Moradi
Volume 3, Issue 10 , July 2005, Pages 73-101
Abstract
In today's developed corporations, because of multiplicity of owners, direct monitoring of managers' performance is impossible, but this group only realizes the released benefits. Therefore, it is reasonable that they use governance mechanisms, for monitoring and optimal controlling behavior of hired ...
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In today's developed corporations, because of multiplicity of owners, direct monitoring of managers' performance is impossible, but this group only realizes the released benefits. Therefore, it is reasonable that they use governance mechanisms, for monitoring and optimal controlling behavior of hired managers. One means in reaching this purpose is rewarding managers based on their performance and motivating them, in accordance with the firm's purposes, in the manner discussed in the agency theory.
The main purpose of this paper is to examine the agency theory implications to isolate market determinants of board of director's bonuses, on the basis of data collected from Tehran's Securities Exchange (TSE) market for 1378 to 1382. For this purpose, by utilizing a regression model, board of director's bonus for selected corporation, were related to some accounting and market-based performance measures as well as some fixed variables (with respect to performance) such as the firm's size and the ownership concentration.
The results at the level of all corporations suggest that there is a significant relationship between Return on Assets (ROA) ratio and its changes, firm's size, ownership centralization, financial risk and board of directors' bonus. At the industry level, both the firm's size and ROA ratio were used more than the other selected variables. By substituting "changes in bonus" for the bonus itself, the explanatory power of the model used, was weakened. In this stage, the only variable that is significantly related to changes in bonuses is the ROA ratio.
Yahya Hassas Yeganeh; Ali Jafari
Volume 3, Issue 10 , July 2005, Pages 103-125
Abstract
Audit quality is one of the fundamental discussions in auditing theory and practice. The goal of this research can be classified in five categories: Fist, identification of significant factors in audited quality through library research of survey. Second, collecting and analyzing identified factors among ...
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Audit quality is one of the fundamental discussions in auditing theory and practice. The goal of this research can be classified in five categories: Fist, identification of significant factors in audited quality through library research of survey. Second, collecting and analyzing identified factors among experts in the field and each factor place in auditing in IACPA by on Delphi survey. Third, analyzing of IACPA's actual audit quality by reviewing audit of financial statements of audited firms. Fourth, comparison of perceived audit quality with actual audit quality. Fifth, suggestion for important of the auditing to certified auditors. The result of the research shows that the seven variable: ( I) specialization (2) efficiency (3) discover of misstatement (4) Regulatory Mechanism (5) conflict of interest (6) Free Market Approach (7) auditor size, arc agreed upon by most experts in the field.
Also assessment of the expert in the research shows that the seven key items that are significant in audit quality are rarely adhered to in auditing by certificated auditors. Analyze of research in auditing reports of the financial statement belonging to 135 companies in the years 1381, 1383 done by IACPA shows that the experts are not efficiency.
Ali Saghafi; Mohammad Arab Mazaryazdi; Rafik Baghomian
Volume 3, Issue 10 , July 2005, Pages 127-156
Abstract
The fast moving pace of developments on the Information and Communication Technologies (ICT) and especially on the Internet, affects all aspects of society. In accounting, the Internet provides a new and revolutionary method of financial reporting. It is fast, cheap and increasingly accessible to shareholders ...
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The fast moving pace of developments on the Information and Communication Technologies (ICT) and especially on the Internet, affects all aspects of society. In accounting, the Internet provides a new and revolutionary method of financial reporting. It is fast, cheap and increasingly accessible to shareholders and other stakeholders of the firms.
Despite above mentioned evolution, there is a little attention toward such changes in Iran.
The organization of this paper is as follows. It first provides a brief literature review of Internet Financial Reporting (IFR) and describes some theoretical approaches on i t. Thereafter the paper reports current situation of IFR and then predicts immediate and future trends of it. The last section reviews the current situation of IFR i n Iran and finally makes suggestions to improve the situation.
