Empirical Studies in Financial Accounting

Abstract The purpose of this study is to gather evidence about the effect of information transparency on stock liquidity uncertainty and also the effect of stock liquidity uncertainty on the firm value. In order to measure the information transparency, two measure of auditing quality and non-smoothing profits have been used. For assessing the stock liquidity uncertainty, four measures have been used, including liquidity variation, liquidity distribution skewness (as a measure for assessing extreme illiquidity), co-variability of stock liquidity with the market liquidity and co-variability of stock liquidity with the market returns. The results reveal that the variable of auditing quality has a meaningful negative relation with four measures of liquidity uncertainty, and the variable of non- smoothing profits has only a meaningful negative relation with the liquidity distribution skewness, and has a meaningful positive relation with other measures. Also, the Tobin’s Q variable as a measures (criterion) of the firm value has shown a meaningful negative relation with the criteria of liquidity variation and liquidity co-variability of stock with the market liquidity. It has a positive meaningful relation with the measure of relation with the measure of liquidity distribution skewness and co-variability of stock liquidity with the marke

Abstract This paper investigates the relationship between Accounting Conservatism and Bankruptcy Risk in Tehran Stock Exchange (TSE). To do so, the sample firms have been divided into two groups: bankrupting firms and non-bankrupt firms. It is assumed that firms subject to the article 141 of the amendment to Commercial Law, for two years, are more vulnerable to bankruptcy. Using the Feltham and Ohlson model (1995) to measure conservatism, the sample firms have been analyzed in two steps: first, firms vulnerable to bankruptcy, second non-bankrupt firms and then all sample firms. The results of our sample of 222 firms listed in TSE; show that conservatism is dominant in all firms and years. Second, conservatism is lower in bankrupting firms.

Abstract

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 rational and pressure for Harmonization, Obstacles to harmonization and introduces many organizations and entities are involved in the process of harmonizing accounting standards.