Yahya Kamyabi; Esmail Tavakolnia
Abstract
AbstractRelations in the analysis of CVP, implies a linear relationship between sales, costs and profit. However, recent studies have documented a significant non-linear behavior of costs and profit, and cost stickiness is one of the most important behavior. Cost stickiness requires considerable conceptual ...
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AbstractRelations in the analysis of CVP, implies a linear relationship between sales, costs and profit. However, recent studies have documented a significant non-linear behavior of costs and profit, and cost stickiness is one of the most important behavior. Cost stickiness requires considerable conceptual changes in CVP model, which refers to conceptual and empirical limitations of this model. Therefore, this study uses the data of 140 companies listed in Tehran’s Stock Exchange over the 1385 to 1392 period to present the asymmetric model of CVP analysis, and enters cost stickiness into the equation. The results of the study showed that the standard model of CVP requires adjustment of cost stickiness, in case of using Anderson et al. (2003) model, and total amounts of revenues and costs, due to the lack of their efficacy of earnings management measures relating to the changes of classification. In other words, given the realized sales level, the profit is less if the sales level has increased compared to the prior period, than when the sales level has decreased compared to the prior period.
Yahya Kamyabi; Ehsan bouzhmehrani; Fazel naderi palangi
Volume 11, Issue 43 , October 2014, , Pages 131-151
Abstract
Transactions with related parties are factors reducing market value of the investment. Although all transactions with related parties are opportunistic, but the prevailing view is that these transactions influence risk and are important for investors. In fact, lack of knowledge about the nature of transactions ...
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Transactions with related parties are factors reducing market value of the investment. Although all transactions with related parties are opportunistic, but the prevailing view is that these transactions influence risk and are important for investors. In fact, lack of knowledge about the nature of transactions with related parties, causes information asymmetry for shareholders and investors. Therefore, this study aims to investigate the relationship between related-party transactions and earnings forecast error as well as independent board members (proportion of non-duty members of the board) on the relationship between related-party transactions and earnings forecast error. To investigate this relationship, we selected 78 companies data listed on Tehran Stock Exchange between 1387 and 1391. Using Eviews, hypotheses were tested. The results indicate that the related-party transactions are positively and significantly associated with earnings forecast error.In addition, the results show that the independent board members have moderating role on the relationship between related-party transactions and earnings forecast error.
