Mohsen Khoshtinat; V. Nadi Gbomi
Volume 7, Issue 25 , April 2009, , Pages 53-85
Abstract
Many finance researchers know disability of classical models of assets pricing and efficient market hypothesis to explain predictable patterns in securities return, anomalies and mispricing in assumption of full rationality of economic agents. Based on this assumption, the probability that people will ...
Read More
Many finance researchers know disability of classical models of assets pricing and efficient market hypothesis to explain predictable patterns in securities return, anomalies and mispricing in assumption of full rationality of economic agents. Based on this assumption, the probability that people will mistake is random and its effects quickly remove by other rational investors. By relaxing this assumption, some models developed based on specific trading strategies and others based on cognitive biases and psychological characteristics of investors.
One of the most common cognitive biases in the field of psychology is overconfidence that has been defined as overestimation (optimistic) of precise of private information. Many researchers explain stylized facts such short-term continuation (momentum) and a long-term reversal in stock returns, high levels of trading volume, excessive volatility, and a disproportionate amount of risk borne by investors by using overconfidence bias. In this study, which tried to plan and test four hypotheses based on the data of 119 companies during the period from the beginning of the 1378 to end of 1386 (for 9 years) in regard to evidence documentation for aggregate overconfidence behavior. Results of study show that evidence for supporting aggregate overconfidence is not strong.
Mohsen Khoshtinat; Fereshteh Yoosefi
Volume 5, Issue 20 , January 2008, , Pages 37-59
Abstract
This paper studies the relationship between information asymmetry and accounting conservatism in financial statements. Information asymmetry between informed and uninformed equity investors creates an agency cost that ...
Read More
This paper studies the relationship between information asymmetry and accounting conservatism in financial statements. Information asymmetry between informed and uninformed equity investors creates an agency cost that increases the equilibrium return on the firm's equity. This effect gives parties to the firm an incentive to generate a mechanism that reduces information asymmetry. In the other hands Conservatism reduces the manager's incentives and ability to manipulate accounting numbers and then reduces the agency costs.
Our empirical tests express that information asymmetry among equity investors is significantly positively related to conservatism. Further our tests confirm that changes in information asymmetry between equity investors lead changes in conservatism but conservatism doesn't lead to information asymmetry.
This result rejects the FASB proposition that conservatism produces information asymmetry among investors.
Mohsen Khoshtinat; Morteza Akbari
Volume 5, Issue 19 , October 2007, , Pages 21-49
Abstract
Different information introduced to the market by the listed companies affect share prices in the capital market. Some are used for forecasting and estimation, so its credibility and authenticity is under question. A major problem almost all managers are facing with is that to what degree their earnings ...
Read More
Different information introduced to the market by the listed companies affect share prices in the capital market. Some are used for forecasting and estimation, so its credibility and authenticity is under question. A major problem almost all managers are facing with is that to what degree their earnings forecast is reliable to the capital market, how they are affected by different variables, and how authenticity can be augmented. This article empirically tries to investigate the effect of the factors reviewed by foreign scholars, on Tehran Stock Exchange. The research hypotheses are based on evaluating five factors including type of information (positive or negative), deviation in forecasting (managers credibility), forecast timing, size of the companies, and adjustment or non-adjustment of the forecasted information. Considering the volatility of the share price at the time of projected profit declared by the negative information (a lower forecasted earning) severely makes share price sensitive; unlike positive information which does no draw as much attention of shareholders and brokers as the negative information. Secondly, the size of the listed companies has a wider effect on the investors to accept the projected profit. Thirdly, the materialization of the past forecasts affects acceptance of the future forecasts as well. Fourth, medium-term forecasts values more reaction on share prices rather than the long-term ones. And finally adjustment of the forecasts has no effect on the upcoming forecasts. In short, this study tries to raise the awareness concerning how managers can link their projected future profits to the market.
Mohsen Khoshtinat; Javad Bostanian
Volume 5, Issue 18 , July 2007, , Pages 25-57
Abstract
Professional Judgment is one of the major elements of auditing. Auditors continually use their Professional Judgment both to judge whether the accounting treatment used by the preparers of financial statements are according to Accounting Standards and to Judge ...
Read More
Professional Judgment is one of the major elements of auditing. Auditors continually use their Professional Judgment both to judge whether the accounting treatment used by the preparers of financial statements are according to Accounting Standards and to Judge how to carry out their audits.
Recognition of the sense of auditors’ professional Judgment and factors affecting their professional judgments is essential so that the auditors judgment s are applied appropriately and this not to lead to freedom of auditors from any discipline or auditors to carry out unlimited liberty. Recognition of professional Judgment dimensions in auditing can also clarify which characters desire to make professional judgment and which environment factors influence their professional judgments.
Research findings suggest that knowledge, experience, integrity, independence, moral behavior, professional skepticism and field independence are the most important personal characteristics of auditors, which affect their professional judgment and professional oversight, accountability necessities, existence of audit programs and check lists and clarity of Accounting and Auditing Standards are the most influent audit environment factors affecting auditors’ professional judgments.
Mohsen Khoshtinat; Hamed Fallah Joshaghani
Volume 5, Issue 17 , April 2007, , Pages 1-25
Abstract
In this study the effect of "Financial Leverage (FL) on Earning Response Coefficient (ERC)" for accepted members of Tehran Stock Exchange is considered. The purpose is to find out whether or not the investors, analysts, etc. consider the capital structure and leverages of the firms when reacting to the ...
Read More
In this study the effect of "Financial Leverage (FL) on Earning Response Coefficient (ERC)" for accepted members of Tehran Stock Exchange is considered. The purpose is to find out whether or not the investors, analysts, etc. consider the capital structure and leverages of the firms when reacting to the good and bad news caused by revealing the accounting in formation.
Financial Leverage measurement approaches are of two divisions as follows:
I) Income Statement
2) Balance sheet
In this research balance sheet approach i s used. In this approach, two definitions have been considered for leverage.
I) Debit/ assets Ratio
2) Debit I equity Ratio
Both definitions are used here. Studying the only research hypotheses using the regression analysis during 2000-20004 indicates that in the first leverage definition there is a reverse relationship between FL & ERC in the whole sample and in high leverage and in the second definition i n high leverage. However in the first definition in low leverage and i n the second one in the whole sample and in low leverage there's no considerable relationship between ERC and FL.
Mohsen Khoshtinat; Soghra Barari Nokashti
Volume 4, Issue 16 , January 2007, , Pages 1-18
Abstract
Financial statements release and announcement earnings convey some information to the capital market and causes changes in price and exchange volume of stocks. Accountants concern with such questions as: is there a relationship between accounting and the stock price changes and the abnormal returns around ...
Read More
Financial statements release and announcement earnings convey some information to the capital market and causes changes in price and exchange volume of stocks. Accountants concern with such questions as: is there a relationship between accounting and the stock price changes and the abnormal returns around the date of annual and do convey any information to the capital market? And do announcement earnings have any informational content?
Since unexpected stock returns of some companies after the announcement earnings is more than the other companies, it may raise a question that why the market reaction to the good and bad news of some companies is more and greater than if s reaction to other?
There are many factors affecting earnings response coefficient. The size of the company is one of these factors and has been examined more frequently in the literature and has been recognized as a powerful factor affecting informational content of financial statements and more specially announcement earnings. So our research has some questions as below:
1- - Do stockholders respond to announcement earnings news?
2- Is coefficient of respond to announcement earnings different among the companies of different size?
To find the answer of these questions we have studied a sample consisting of l O I companies during a 3 years period stating from 1382 (1382 to l384). The results of our research show that there is a meaningful relation between the annual announcement earnings and unexpected return around the date of declares. But the quantities for R and R2 show a direct weak relation. Then to consider the second question we first classified the companies in to three classes: small sized, middle sized and large, based on their total assets book value and then we did separate tests for each class. There results show no meaningful relation between annual announcement earnings and unexpected returns around the declaration date in large companies. But there has been a meaningful relation i n the small and middle sized companies classes so we can conclude that there is a reverse relationship between the company size and informational context of two announcement earnings. Then there should be more focus on disclosure in small and middle sized companies because they are more important to users.
Mohsen Khoshtinat; Raheleh Yaghoubi
Volume 4, Issue 15 , October 2006, , Pages 21-41
Abstract
Policy makers, considering alternatives for tax reform view the value - added tax (VAT) as an alternative option for restructuring tax systems. The necessity of establishing a tax system is one of the concepts taken account of before designing or restructuring a tax system.
In this research according ...
Read More
Policy makers, considering alternatives for tax reform view the value - added tax (VAT) as an alternative option for restructuring tax systems. The necessity of establishing a tax system is one of the concepts taken account of before designing or restructuring a tax system.
In this research according to current social, cultural and economic circumstances of the society, the necessity of establishing the value - added tax system in Iran is invest gated.
The results of this study reveal that applying the value - added tax rate suggested by the Government , 7 per cent, may not only decrease the total net tax revenues but also seems to decrease the citizen's wealth because of intense expenditure of implementing and applying of this new tax system.
Therefore, applying the previous suggested tax rate of 10% seems more reasonable.
Mohsen Khoshtinat; Mehdi Rezaei
Volume 4, Issue 14 , July 2006, , Pages 1-37
Abstract
Earning as an important item of financial statement is considered by many researchers. Many researches in different aspect of earning show the extreme important of it. Here, we attempt to consider earning persistence as a basic and effective factor in making decision and stock price ...
Read More
Earning as an important item of financial statement is considered by many researchers. Many researches in different aspect of earning show the extreme important of it. Here, we attempt to consider earning persistence as a basic and effective factor in making decision and stock price so we investigate the explanatory power 's of earning (include three level of earnings: operating earnings, net profit and earnings forecast) in stock price.
Book value as an important factor is considered in the recent decade and some stock evaluation models use book value as a relevant factor .we also investigate the explanatory 's power of book value in stock depend on higher or lower earning persistence.
Our results show, when earning persistence increase, the explanatory's power of earning in stock price increase too. These evidences accompany our hypothesis in different level of earnings. But we could not find any evidence about contemporary role of book value and earning persistence in stock price.
Mohsen Khoshtinat; Sbahpoor Esmaeeli
Volume 3, Issue 12 , January 2006, , Pages 27-56
Abstract
This research undertakes the relationship between earnings quality and stock return of the listed companies in the Tehran Stock Exchange.
The aim of this research is to assess whether the investors, analysts, and etc. have comprehend the quality of the accountancy information (earnings quality) and ...
Read More
This research undertakes the relationship between earnings quality and stock return of the listed companies in the Tehran Stock Exchange.
The aim of this research is to assess whether the investors, analysts, and etc. have comprehend the quality of the accountancy information (earnings quality) and utilize it in their decision making process? In order to find the answer to this question we need to take in to account the market reaction.
We can assess and evaluate the market reaction with the use of the accumulated data published and in the following two ways:
1- Volume of transactions
2- Share price and subsequently the stock return
Therefore in this research stock return is an independent variable.
Within the earnings quality assessment criteria, two criteria, the ratio between cash flows resulted from operational activities with operational earning and accruals , are selected and their influence on stock return of listed companies in the Tehran Stock Exchange are examined.
This research considers four hypotheses. In these hypotheses earnings quality, accruals, discretionary and nondiscretionary accruals are considered as independent variables and stock return as dependent variable. The examination of the research hypotheses, with the help of regression analysis during the period of 1379-1383 (Iranian calendar year), shows that there is little influence between earnings quality and stock returns.
Mohsen Khoshtinat; Mahtab Roohnia
Volume 3, Issue 11 , October 2005, , Pages 177-207
Abstract
The duty of an accountant is more than measurement, classification and simple summarizing of data of financial reports which is used by others and the main purpose of accounting reports is to force an effect on behaviors in term of useful applications. Subjects such as improvement in relationships increase ...
Read More
The duty of an accountant is more than measurement, classification and simple summarizing of data of financial reports which is used by others and the main purpose of accounting reports is to force an effect on behaviors in term of useful applications. Subjects such as improvement in relationships increase the human body's accuracy in judgments and information processing. Simplification of financial decision making is considered by lots of accountant investigators. This made some studies for modification of information from financial data.
The current research was done considering the fact that "Use of graphical color symbols as a tool for data show, is very effective and familiar" and tested the effects of valuable color charts.
Studies showed that all of factors of sexuality, individual characteristics and their psychology, difficulty and kind of decision making are entered in effectiveness of colors. So the current research is pay attention to the effects of uses of color" charts to show the data and accounting information in conditions of difficult problems against simple ones and also tries the carefulness of decisions for ladies against gentlemen. This tends to reach to the main target which is preparation of the information with higher degrees of quality in term of subject, decision environment and decision makers' characteristics.
Decision making in current research was in type of prediction of continuity in the works of companies using test samples of gathered information and financial ratios i n t he shape of column charts.
Results of this research showed that the decision faults is reduced when color charts of financial information of the companies is used for difficult information processing and also made a better accuracy in predictions. Meanwhile, in comparison of the gentlemen, ladies did their judgments better with lower faults when color charts were used.
Mohsen Khoshtinat; Mohammad Taghi Ghesvari
Volume 3, Issue 9 , April 2005, , Pages 43-61
Abstract
In the present article, the power of financial ratios based on cash flow statement will be investigated, to foresee the companies' bankruptcies. To accomplish this, two metric models of Multiple Auditing Analysis and Logistic Regression are used, and their predictive power for bankruptcy of present companies ...
Read More
In the present article, the power of financial ratios based on cash flow statement will be investigated, to foresee the companies' bankruptcies. To accomplish this, two metric models of Multiple Auditing Analysis and Logistic Regression are used, and their predictive power for bankruptcy of present companies of Tehran Stock Exchange is evaluated. Both models were using statistics of two groups of Tehran Stock Exchange companies. Both groups are composed of 32 companies who are the subject of the Article 141 of Commerce Act. The model of this analysis is KC and Bartzak (1985), which includes 9 financial ratios of accrual ratios of cash to total assets, current assets to total assets, quick ratio, sales to current assets, net income to total assets, and total liabilities to equity. It also includes cash flow statement rations, consisting of operational cash flow, operational cash flow to current liabilities, and operational cash flow to total liabilities.
The statistical result of analysis is the indication of validity of both models and selected financial ratios. The two models can well predict the financial crisis of the companies one year before occurring.
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 ...
Read More
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.
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 ...
Read More
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.
Mohsen Khoshtinat; Abdollah Khani
Volume 1, Issue 3 , October 2003, , Pages 127-153
Abstract
One of the most important characteristics of corporation is distinction between ownership and management. On this basis, manager exclusively available to access to apart of information and he/she is ...
Read More
One of the most important characteristics of corporation is distinction between ownership and management. On this basis, manager exclusively available to access to apart of information and he/she is responsible to preparing and transferring financial information. Because of such authority and other characteristics such as characteristic of accounting , because of accruals (difference between cash basis income and accrual basis income) and incentives such as bonus incentive , income smoothing, desert of regulation, manager available and willing to manipulate information (income management), specially financial information, in direct of his/her benefit and in contrast with benefit of other groups. This object, in this research and in form of four hypotheses, in connection of management bonus, prediction of bonus and income, income smoothing and monitoring of regulation of pricing is tested. These hypotheses are analyzed by regression analyzing and Wilcoxon test. On basis of research result and considering of limit in available to financial information of some statistic popular corporations, managers are willing to manage the income in periods that corporation has loss or income, in order to increase the bonus; and in profitability periods, in order to smooth the income.
Mohsen Khoshtinat; Mohammad Reza Sarebanha
Volume 1, Issue 2 , July 2003, , Pages 107-139
Abstract
There are considerable debates on how dividend policy effects firm value. Some researchers believe that dividends increase shareholder wealth; others believe that dividends are irrelevant, and still others believe that dividends decrease shareholder wealth. The main purpose of this study was to investigate ...
Read More
There are considerable debates on how dividend policy effects firm value. Some researchers believe that dividends increase shareholder wealth; others believe that dividends are irrelevant, and still others believe that dividends decrease shareholder wealth. The main purpose of this study was to investigate the effects of dividend on common stock prices. To test the research hypothesis, the study used the 1994-2002 financial data of a cross - sectional set of companies listed in the Tehran Stock Exchange. The financial data used in the study belonged to a total of 60 corporations who met certain predetermined research criteria. Regression was used to test the research hypothesis. The results show positive correlation between the dividend and common stock prices.
Mohsen Khoshtinat
Volume 1, Issue 1 , April 2003, , Pages 61-84
Abstract
Understanding the international dimensions of accounting is vital for anyone who wants to do business or invest across national borders. Accounting amounts may vary substantially according to the principles that govern them. Differences in culture, business practices, Political and regulatory structures, ...
Read More
Understanding the international dimensions of accounting is vital for anyone who wants to do business or invest across national borders. Accounting amounts may vary substantially according to the principles that govern them. Differences in culture, business practices, Political and regulatory structures, Currency values, foreign exchange rates, local inflation rates, business risks, and tax codes must be considered in deciding where and how to do business. Financial Statements and other disclosures are impossible to understand without an awareness of the underlying accounting principles and business culture.
We discuss how accounting has developed historically, and offers a system of classification designed to help you understand the similarities and differences which you will find among national accounting principles. Accounting principles are often developed on an ad hoc basis and embody, in complicated and unpredictable ways, the information needs of managers, investors, bank and other creditors, tax authorities, Politicians and regulators, employee, and (increasingly) international organizations, among others. Resulting accounting systems vary dramatically in purpose, design, operation, and effect.
