Accounting report
Masoumeh Shahsavari; Mohammad Reza Abbaszadeh; Hamze hesari
Abstract
In the present study, the relationship between the qualitative information of the auditor's report and the quality of accounting has been discussed. In particular, the relationship between the tone of the auditor's report and the audit fee (audit quality criterion based on the input of the audit process) ...
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In the present study, the relationship between the qualitative information of the auditor's report and the quality of accounting has been discussed. In particular, the relationship between the tone of the auditor's report and the audit fee (audit quality criterion based on the input of the audit process) has been examined with respect to the concepts of risk, client business risk, and litigation risk. To test the research hypotheses, 360-year-firms data of Iranian Stock Exchange were used during a period of 6-years, three years before and three years after the revision of Auditing Standard No. 700. Textual data were analyzed using Maxqda10 text analysis software and after quantification along with other quantitative data were analyzed using multivariate linear regression in Ives software and SPSS Eviews 9. The results indicate a weak inverse relationship between the optimistic tone and the audit fee variable. In addition, the findings showed that the acceptance of the requirements of Auditing Standard No. 700 does not make significant changes in the relationship between the tone of the auditor's report and the remuneration compared to the period before the review. In general, the results of the research indicate evidence of the predominance of the signaling effect (albeit poorly) in the sample.
Ahmad Ahmadpour; Masoumeh Shahsavari; Alireza amoozad Khalili
Abstract
In the age that firms deal with various challenges, financial safety and theFactors which end with recession are of great importance. Along with thefact mentioned, the present study considers the investigation of the effect ofconditional conservatism and accounting-based earnings attributes on risk ofbankruptcy ...
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In the age that firms deal with various challenges, financial safety and theFactors which end with recession are of great importance. Along with thefact mentioned, the present study considers the investigation of the effect ofconditional conservatism and accounting-based earnings attributes on risk ofbankruptcy in Firms Listed at the Tehran Stock Exchange. The Z’altman isused for measuring the risk of bankruptcy and accruals quality, earningspersistence, earnings predictability, and earnings smoothness used formeasuring the Accounting-based Earnings Attributes.The results ofestimating of research hypotheses using the panel data techniques in eviewssoftware for 126 firm of Tehran’s Stock Exchange during a period of fiveyears from 2010 To 2014, suggest that not only using the accountingconditional conservatism does not make any important change in decreasingof risk of bankruptcy, but also it is able to increase the financial distress ofIranian firms. Also, the result show the significant negative relation betweenthe accounting-based earnings attributes (Accruals quality, persistence andpredictability) with risk of bankruptcy of firms. Generally, The results revealthat risk of bankruptcy of firms are mostly influenced by economicalcondition of the country, the politics of financing, the size of the firms, thesort of industry ,and improvement of accounting-based earnings attributesrather than conditional conservatism approaches.
Abstract
In the age that firms deal with various challenges, financial safety and the Factors which end with recession are of great importance. Along with the fact mentioned, the present study considers the investigation of the effect of conditional conservatism and accounting-based earnings attributes on risk ...
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In the age that firms deal with various challenges, financial safety and the Factors which end with recession are of great importance. Along with the fact mentioned, the present study considers the investigation of the effect of conditional conservatism and accounting-based earnings attributes on risk of bankruptcy in Firms Listed at the Tehran Stock Exchange. The Z’altman is used for measuring the risk of bankruptcy and accruals quality, earnings persistence, earnings predictability, and earnings smoothness used for measuring the Accounting-based Earnings Attributes. The results of estimating of research hypotheses using the panel data techniques in Eviews software for 126 firm of Tehran’s Stock Exchange during a period of five years from 2010 To 2014, suggest that not only using the accounting conditional conservatism does not make any important change in decreasing of risk of bankruptcy , but also it is able to increase the financial distress of Iranian firms. Also, The result show the Significant negative relation between the accounting-based earnings attributes (Accruals quality, persistence and predictability ) with risk of bankruptcy of firms. Generally , The results reveal that risk of bankruptcy of firms are mostly influenced by economical condition of the country, the politics Of financing, the size Of the firms, the sort of industry ,and improvement Of accounting-based earnings attributes rather than conditional conservatism approaches .
Ahmad Ahmadpoor; asoomeh hahsavari
Volume 11, Issue 41 , April 2014, , Pages 37-58
Abstract
This study investigates how management Authority of bankrupt firms performs in reporting future profitability and earnings quality effect in Tehran Stock Exchange during 1385-1390. Discretionary accrual is considered as measure of earnings management. Also in this study, it is investigated the effect ...
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This study investigates how management Authority of bankrupt firms performs in reporting future profitability and earnings quality effect in Tehran Stock Exchange during 1385-1390. Discretionary accrual is considered as measure of earnings management. Also in this study, it is investigated the effect of accounting-based earnings attributes on future profitability separately: accruals quality, earnings persistence, earnings predictability, and earnings smoothness. The results of estimating unbalanced panel data technique for 55 firms subjected to bankruptcy of Altman's model show that the Bankrupt companies tend to be opportunistic earnings management. We also find that earnings management performs better than earnings quality in predicting future profitability.
