Empirical Studies in Financial Accounting

Abstract  
This study has been implemented with the aim of the development of the researches in the scope of
the management effects through investigation of the management ability on the investment decisions
and the stock price crash risk. In this regard and in order to measure the managers ability and its
related effects on the investment efficiency (in the form of three models) and also its interaction
with the element of the reporting quality on the future stock price crash risk (in the form of two
models), the Demorgian et al (2013) model has been used. Hence two different statistical samples
from the Tehran stock exchange listed companies and with the implementation of the Systematic
removal model have been used. Also in order to examine the hypotheses, estimation methods and the
assumption of the model, the Panel analysis has been used. Our findings show that the managerial
talent decreases the underinvestment and reinforces the overinvestment and generally increases the
deviation of the expected level of investment. In addition, the results of this study on the one
hand, show that the managerial talent, meaningfully, decreases the future stock price crash risk
and from the other hand it shows that the desirable reporting quality, decreases the future stock
price crash risk. But there is no evidence showing the existence of an interactive relationship
between capable managers and high reporting quality with future stock price crash risk.

Abstract This study has been implemented with the aim of the development of the researches in the scope of the management effects through investigation of the management ability on the investment decisions and the stock price crash risk. In this regard and in order to measure the managers ability and its related effects on the investment efficiency (in the form of three models) and also its interaction with the element of the reporting quality on the future stock price crash risk (in the form of two models), the Demorgian et al (2013) model has been used. Hence two different statistical samples from the Tehran stock exchange listed companies and with the implementation of the Systematic removal model have been used. Also in order to examine the hypotheses, estimation methods and the assumption of the model, the Panel analysis has been used. our findings show that the managerial talent decreases the underinvestment and reinforces the overinvestment and generally increases the deviation of the expected level of investment. In addition, the results of this study from one hand, show that the managerial talent, meaningfully, decreases the future stock price crash risk and from the other hand it shows that the desirable reporting quality, decreases the future stock price crash risk. But there is no evidence showing the existence of an interactive relationship between capable managers and high reporting quality with future stock price crash risk.

Abstract The purpose of this research is to examine both the relationship between accounting conservatism and level of investment under the need or no need of financing conditions and the impact of ultimate ownership on this association. The statistical society of the present research contains 103 companies selecting from all companies listed in Tehran Stock Exchange using removal method over the time span of 2006-2010. Combined data method with fixed effect has been used in order to test the research hypothesis. The result depicts that the association between conservatism and investment is significantly negative when a firm do not need external financing. Nonetheless, this association is significantly positive in companies which need external financing. Furthermore, we find that the relationship between conservatism and investment in the companies whose ultimate ownerships controller is governmental or semi governmental firms is significantly negative. Thus, when the agency problem is enhancing, conservatism acts as a mechanism to decrease this problem and engenders reduction in investment cost

Abstract The purpose of this research is to examine both the relationship between accounting conservatism and level of investment under the need or no need of financing conditions and the impact of ultimate ownership on this association. The statistical society of the present research contains 103 companies selecting from all companies listed in Tehran Stock Exchange using removal method over the time span of 2006-2010. Combined data method with fixed effect has been used in order to test the research hypothesis. The result depicts that the association between conservatism and investment is significantly negative when a firm do not need external financing. Nonetheless, this association is significantly positive in companies which need external financing. Furthermore, we find that the relationship between conservatism and investment in the companies whose ultimate ownerships controller is governmental or semi governmental firms is significantly negative. Thus, when the agency problem is enhancing, conservatism acts as a mechanism to decrease this problem and engenders reduction in investment cost.

Abstract Information uncertainty has been an old topic in finance literature. Information uncertainty means ambiguity about a firm’s fundamental value, which may arise from two conventional sources: 1) characteristics of the business or industry, and 2) the company’s disclosure policy. The first source related to growth options and second source related to information asymmetry. From investors’ perspective the mechanisms and outcomes of every source are quite different. In this research we use from earning forecast dispersion as a proxy for measuring information uncertainty. We use stock turnover and price impact as proxies for information asymmetry. To control firm’s growth options, we use firm age, market-to-book ratio, and capital expenditure over total assets and Tobin’s Q. We use panel data regression model to analyze information. Our results indicate that information uncertainty has a positive relationship with information asymmetry and growth options.

Abstract Regarding the critical role of liquidity in asset price discovery, sharing of financial risk, increasing of expected return and transaction costs reduction, it is important to know about the effective factors. This study examines the effects of the quality of corporate disclosure   on stock liquidity. Because increasing disclosure quality reduces information asymmetry and reducing information asymmetry increases market liquidity, so the main hypothesis of this study is that disclosure quality has effect on stock liquidity.  In this study, for separating various details impacts of disclosure quality, we used timeliness and reliability and to determine stock liquidity, we used 15 different trading and information liquidity measures. 112 Tehran Security Exchange listed companies, from 1384 to 1388 are chosen and research hypothesis was tested by linear multivariable regression in pre and post-test. The results indicate that disclosure quality has positive effect on stock liquidity.  Also, they show positive effect of reliability on stock liquidity.

Abstract