Capital Structure
Seyed Alireza Hossieni,; Hasan Valiyan; Mohammadreza Abdoli; Maryam Shahri
Abstract
The purpose of this research is the startup accounting development field’s framework and appraisal in the context of capital market companies. This study is exploratory in terms of the type of objective, and it is considered mixed in terms of the type of data collection. In order to measure the ...
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The purpose of this research is the startup accounting development field’s framework and appraisal in the context of capital market companies. This study is exploratory in terms of the type of objective, and it is considered mixed in terms of the type of data collection. In order to measure the reliability of the identified dimensions, the fuzzy Delphi process was used to examine the confirmed axes from the phase of the fuzzy Delphi analysis, based on pairwise comparison in the quantitative section through the Micmac matrix. The results of this study in the qualitative part, during 13 interviews, identified four categories, 8 components, and 41 themes of the concept and developed them in the form of a multidimensional theoretical framework. In the quantitative section, it was also determined that the effectiveness of the "G_1" educational field strengthening dimension is higher than the other examined dimensions, and this dimension was selected as the most central factor in the development of startup accounting in the context of capital market companies. IntroductionFinancial startups are considered one of the most emerging ways of managing financial resources and accounting of the third generation. While accelerating the liquidity circulation cycle in industries, they also possess higher competitive capacities to leverage the advantages of financial markets. However, the importance of the development of startups is not necessarily tied to their novelty or uniqueness in driving competitive business dynamics, but rather to their ability to provide financial services at lower costs, with greater speed and universality at the financial market level, meeting the needs of beneficiaries. This can gain legitimacy for companies through their financial and accounting functions. Literature ReviewOne of the most exemplary business models is startups, which are often created as small and flexible units within organizational structures, or as start-up businesses in the form of small and medium-sized companies through innovative plans, they consistently aim to provide goods and new services that are competitive in the market. Therefore, startups can be defined in two ways. On the one hand, startups can be described as companies with the goal of achieving rapid growth in a specific market or situation. On the other hand, startups can be considered human institutions designed to create new products or services under uncertain conditions. Accordingly, startups should be considered a valuable resource for generating new knowledge, which has gradually transformed into innovation with the development of entrepreneurial infrastructure, as they leverage emerging technologies to invent new products and business models. MethodologyThis study is considered exploratory in terms of its goal within the methodology because it uses the analysis of foundational data theory based on Glazer's approach to identify the background procedures of accounting development for the implementation of financial startups in the context of capital market companies. In terms of the study’s results, it is developmental because the phenomena investigated lack theoretical coherence and an integrated content framework in the study’s context. Regarding the type of data, this study should be considered mixed. In the qualitative part, using foundational data theory and conducting interviews, the effective background procedures for the development of accounting for the implementation of financial startups are identified in the form of a theoretical framework, ensuring the reliability of the identified dimensions through Delphi analysis. In the quantitative part of this study, using the MicMak matrix, an attempt is made to identify the most central area of startup accounting development in the context of capital market companies by comparing the criteria in the row " " and the column " ". ResultIn the qualitative part, through the approach of analyzing foundational data theory and conducting interviews with experts, a total of 41 conceptual themes; 8 components, and 4 categories were identified during the three stages of open, central, and selective coding. Based on this, a theoretical, multidimensional framework was developed, focusing on key axes effective in the development of startup accounting. Subsequently, the reliability of the axes identified through the foundational data theory was measured by performing a fuzzy Delphi analysis. The results indicate the confirmation of all dimensions within the analysis threshold of 0.7. DiscussionIn the following, the axes identified through the Micmac matrix were compared in pairs between the positive pole "+ve" and the negative pole "-ve" to determine the level of influence of row "i" on column "i" or vice versa. The results of the placement of the 8 confirmed axes in the 4 quadrants of the Micmac matrix are significant. Based on this analysis, it was determined that the two dimensions of strengthening the ecosystem fields "G5" and strengthening the educational fields "G1" respectively have a higher level of influence and effectiveness than the other dimensions.The results indicate that capital market companies, to advance their goals of implementing start-up accounting procedures, should focus on strengthening the skill capacities of accountants to effectively use these types of software platforms, based on structural needs assessments.
Accounting tools
Fatemeh Jalali Gorgani; Mohammadreza Abdoli; Hasan Valiyan; Mehdi Safari gerayli; Mohammad Mehdi Hossini
Abstract
The purpose of this study is evaluation matrix of perspective on the driving forces of legacy accounting. In this study, in terms of the methodological goal, this study is exploratory and from the perspective of the result, it is placed in the category of applied research. The participants in the qualitative ...
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The purpose of this study is evaluation matrix of perspective on the driving forces of legacy accounting. In this study, in terms of the methodological goal, this study is exploratory and from the perspective of the result, it is placed in the category of applied research. The participants in the qualitative part include 12 academic experts and accounting professors who have professional experience in the field of accounting and financial reporting, and in the quantitative part 22 people from managers and board members of companies with the nature of family ownership in this study as a pairwise comparison they participated. The result of this study in the qualitative part indicated the existence of 3 categories, 8 components and 39 themes as drivers of legacy accounting in family ownership, which was confirmed based on Delphi analysis. Then, by choosing 2 factors out of 8 identified components as the basis of scenario creation, 10 themes identified as sub-factors of scenario creation were examined. The result of the acquisition in a quantitative part indicates the existence of 4 scenarios with a favorable situation, which shows that the scenario of the second quarter with the metaphorical title of "Governance Hegemony" was determined to be the most effective driver in the emergence of legacy accounting in family-owned companies. IntroductionFamily-owned companies always face the assumption of opportunism at the level of the capital market from the point of view of market theorists and analysts, the reason for which is the large number of board members affiliated with the company owner or holding management positions in the decision-making structure of this type of companies (Sun et al., 2023). Assuming the acceptance of such an approach, it can be concluded that the method of financial functions and information disclosure is also done with the aim of covering the priorities of those in power in such a structure. Under such conditions, the violation of the rights of the beneficiaries can be considered the most important consequence of investing in these companies (Rezayee Pitenoei et al., 2021). Legacy accounting, as a term in such a structure with family ownership, can be considered a kind of practice in the shadow or parallel to the main accounting method of companies, which is used by the management of these companies to satisfy their opportunistic needs (De Wolf et al., 2020). In fact, legacy accounting is considered to be the result of a method of information disclosure that systematically prioritizes the interests of those in power over the interests of other shareholders. This is done in order to stimulate new investors to invest in the company's shares on the one hand and maintain the loyalty of current shareholders on the other. Additionally, it is used to secure their interests by providing cash for the development of investment plans and projects (Lloyd et al., 1999). Literature ReviewLegacy accounting aims to secure the interests of the majority of family owners by increasing the cost of minority shareholders, both in terms of money and share value (Wild, 2015). In fact, the interests of the majority of the shares, by increasing the members of family ownership through opportunistic accounting procedures, can deepen the conflict of interest between the internal owners (family owners) who control the company and external shareholders. This conflict of interest in legacy accounting procedures manifests in various ways, such as selling the company's products at a lower price to related people, hiring unqualified family members in the company, increasing the salary and benefits of family members, or showing an increase in tax payment. For example, companies often seek to minimize taxes, but some studies based on the accounting practices of family-owned companies show increased tax payments (Xia et al., 2017), as these companies aim to fulfill their financial obligations and seek to enhance their reputation by promoting social responsibility. MethodologyWhen designing the model, it is crucial to consider the execution method, ensuring that the phenomenon under investigation lacks an integrated framework and coordination within the target society, at least in terms of content. Therefore, given the lack of necessary theoretical coherence of the concept of legacy accounting within family-owned companies, as discussed in the theoretical foundations and introduction, this research is categorized as developmental research in terms of the result. The research approach of the current study, in terms of data collection logic, is of a hybrid type. This is because it explores a phenomenon for which there is no comprehensive framework in the theoretical areas of legacy accounting at the level of capital market functions, or where consensus is lacking. Therefore, the analysis of the qualitative part and the reliance on the data theory method are used to present the dimensions of the legacy accounting model as a multidimensional model.For this purpose, Glaser's (1992) emergent approach is used to develop the legacy accounting model through three stages of coding by using interviews with experts. In this approach, the theory emerges from the data, and researchers do not have presuppositions regarding the relationship between the data from the beginning. Additionally, based on the emergent foundation data theorizing strategy, data analysis begins simultaneously with the interviews (Kolayeanmoghadam et al., 2020). In terms of the purpose, this research fallswithin the category of exploratory studies conducted using both quantitative and qualitative models. The present study employs various research methods to address the formulated questions, tailoring each method to the specific needs of the respective department. Therefore, based on the nature of collection, this study can be classified as mixed research. Thus, different methods are employed for data collection and analysis at each stage of this study's analytical processes. ResultThis research, by undertaking through three main steps in the theoretical analysis of foundational data including open coding, selective coding, and core coding, seeks to explore the concept of heritage accounting development based on a theoretical framework. Through 12 interviews conducted across three stages of open coding, central coding, and selective coding, a total of three categories, eight components, and 39 conceptual themes were identified. These dimensions were determined after Delphi analysis to ensure reliability. Next, aiming to formulate future scenarios for evaluating the driving forces behind the development of legacy accounting in family ownership, the most effective axes for this evaluation were determined using the Micmac matrix by identifying the inputs and outputs of the matrix model. As a result, this section confirmed governance opportunism and behavioral opportunism as the primary driving factors influencing legacy accounting in family-owned companies. Subsequently, through the reciprocal matrix, scenarios describing the driving forces in the emergence of this accounting practice were determined. ConclusionThe term hegemony means the dominance of a group of power holders over others. The extension of this concept to the mechanism of governance refers to the fact that a powerful person as an owner, in an effort to protect their interests, tries to make arbitrary appointments based on the level of loyalty to the person in power. Decisions should be made solely to achieve the goals and visions set by the powerful person. In this governance structure, while the size of the board of directors may adhere to rules and requirements, the absence of conflict of interest and diversity of views within the board compromises its ability to effectively monitor the company's operations, leading to decisions primarily aligned with the owner's objectives. In such structures, the board of directors often lacks the necessary independence to make decisions contrary to the opinions of those in power. Instead, they merely symbolically apply external supervision to maintain market stability. In general, the scenario of hegemonic governance shows the promotion of the dominant values and culture of the power holders in a company, which is a model of the pervasive dominance of their ideas and opinions over the entire company. Additionally, this result indicates that legacy accounting within such a regulatory process serves as an instrumental approach, a lever to advance governance goals in family companies. By selectively disclosing news and information to stakeholders, it seeks to protect the interests of these individuals or the so-called powerful person
Mohammad Poorsamiei; Mohammadreza Abdoli; Hasan Valiyan; Mehdi Safari gerayli
Abstract
Critical thinking in any profession will help the dynamism of that profession to create responsibility. Auditing also requires critical thinking to meet the needs and expectations of stakeholders in the capital market, a thinking that better understands deviant approaches, distortion, and fraud in financial ...
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Critical thinking in any profession will help the dynamism of that profession to create responsibility. Auditing also requires critical thinking to meet the needs and expectations of stakeholders in the capital market, a thinking that better understands deviant approaches, distortion, and fraud in financial performance, and demonstrates a stronger understanding and intuition against such situations. This research seeks to identify the approaches of critical thinking of auditors and its representation in the form of link analysis. In order to identify the criteria for critical thinking in the profession, systematic search was used on theoretical foundations with the help of accounting experts. Through metasyn thesis analysis, the propositions related to critical thinking in the profession were identified and as a result, the components of analytical capability, inferential capability and intuitive capability were determined as important dimensions in creating critical thinking in the auditing profession. There was a systemic link between connections and impact. The results showed that in order to strengthen the approaches of critical thinking in professional judgments, the existence of technical and specialized knowledge is considered as an important stimulus that gives the auditor results such as improving the level of intuition and the power of mental analysis.
Hasan Valiyan; Mehdi Safari Gerayli; Mohammadreza Abdoli; Alireza Koushki Jahromi
Abstract
According to the agency theory, in order to reduce the problems and agency conflicts, appropriate control mechanisms must be adopted so that the CEO moves in the interests of the shareholders and help shareholders to improve the level of transparency of financial reporting. One of these approaches is ...
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According to the agency theory, in order to reduce the problems and agency conflicts, appropriate control mechanisms must be adopted so that the CEO moves in the interests of the shareholders and help shareholders to improve the level of transparency of financial reporting. One of these approaches is paying attention to the competitive motivations of the CEO in the form of strategies to reduce conflicts and costs arising from the formation of agency relationships. The purpose of this research is The Effect of Tournament Incentives on Financial Restatements According to the moderating role of the CEO Turnover and CEO Recruited New listed companies in Tehran Stock Exchange. In this study, 72 companies were considered during the period from 2010 to 2016. The hypotheses were tested through logistic regression. The results showed that the CEO's Tournament Incentives reduced the refinement of corporate financial statements. CEO tenure also revealed the impact of CEO's Tournament Incentives of the Firm restated the Financial Restatements in order to offset the negative. Ultimately, the CEO Recruited New from within the firm could help to strengthen the positive impact of the CEO's Tournament Incentives on Financial Restatements.
