shokrollah khajavi; Hashem Nasirifar; Mohammad-Hossein Ghadirian-Arani
Abstract
Due to the benefits of political connections and the lower necessity of responding to market pressures to increase information quality by politically connected firms, it is expected that these firms will provide low-quality accounting information. With respect to the extended role of government in the ...
Read More
Due to the benefits of political connections and the lower necessity of responding to market pressures to increase information quality by politically connected firms, it is expected that these firms will provide low-quality accounting information. With respect to the extended role of government in the economy of Iran, this study aims to investigate the impact of political connections on the accounting information quality of the firms listed in the Tehran Stock Exchange (TSE). The statistical sample includes 101 listed firms over the 2010-2018 period. Financial restatement and the intensity of financial restatement are used as indicators of the low quality of accounting information. To achieve the research objectives, two hypotheses have been proposed, and to test the hypotheses, the logistic regression and the multiple linear regression analysis in a panel data model were conducted. The results show that political connections have a positive effect on the occurrence and the intensity of financial restatement. Therefore, it seems that the firms' accounting information quality is affected by their political connections.
Zohreh Arefmanesh; Mohammad-Hossein Ghadirian-Arani; Zohreh Ghadirian Arani
Abstract
The main purpose of this study is to investigation the relationship between financial distress and restatement of financial statement for listed companies on the Tehran Stock Exchange (TSE). Consequently, in this study a sample of 107 nonfinancial listed companies on the TSE from 2010 to 2016 were investigated. ...
Read More
The main purpose of this study is to investigation the relationship between financial distress and restatement of financial statement for listed companies on the Tehran Stock Exchange (TSE). Consequently, in this study a sample of 107 nonfinancial listed companies on the TSE from 2010 to 2016 were investigated. Emerging Market Scoring (EMS) model was used for determining the financial distress and bankruptcy risk. In conducting this study, two main hypotheses were proposed. Comparison of means tests (t-test) and multiple linear regression analysis on panel data were used to test these hypotheses. The research results showed that there is no significant difference between the magnitude of financial restatement in financially distressed and non-distressed companies. However, bankruptcy risk is positively related to magnitude of financial restatement. That is, the more the bankruptcy risk, the more magnitude of financial restatement.
Mehdi Sadidi; Maysam Ahmadvand
Abstract
This study documents the impact of corporate governance nature on momentum strategies profitability in Tehran stock exchange. To do so, we firstly examined the profitability of short term, midterm, and long term momentum strategies and found that, regarding both raw data and industry adjusted data, only ...
Read More
This study documents the impact of corporate governance nature on momentum strategies profitability in Tehran stock exchange. To do so, we firstly examined the profitability of short term, midterm, and long term momentum strategies and found that, regarding both raw data and industry adjusted data, only midterm momentum strategy is profitable. Then, based on corporate governance index score, we categorized sample firms into two groups: democracies (firms with strong shareholder rights) and dictatorships (firms with weak shareholder rights). In the next stage, we checked momentum strategies profitability in each group. Research findings indicate that among democracies, short term and midterm momentum strategies allow investors to earn significant positive profits, while in companies with weak shareholder rights, all three momentum strategies record negative profits. The results of this research also present strong evidence that supports the market pressure hypothesis and confirm that managers of companies with strong shareholder rights are less likely to reveal private information than companies with weak shareholder rights
Mohammad reza Nikbakht; Amir Firooznia; Hamid Kalhornia
Abstract
In this research, the relationship between earnings to stock per price ratio (E / P ratio) with sales future growth and stocks systematic risk in listed companies in Tehran Stock Exchange is investigated. The purpose of the research is to determine whether investors are paying attention to the quality ...
Read More
In this research, the relationship between earnings to stock per price ratio (E / P ratio) with sales future growth and stocks systematic risk in listed companies in Tehran Stock Exchange is investigated. The purpose of the research is to determine whether investors are paying attention to the quality of information presented (earnings per share), and reflects this on corporate future sales growth and the systematic risk of stocks. It also examines whether there is a meaningful relationship between E / P ratio and future sales growth. The sample of this research includes 146 listed companies in Tehran Stock Exchange during the period of 2011-2016. The linear regression model was used to test the hypotheses. The research findings show that there is a negative relationship between earnings per share (E / P) and future sales growth. In fact, companies that have a higher profit / share / E / P ratio have lower sales growth. Also, the results of the research show that there is a reverse relationship between profit to share price (E / P) and systematic risk (β). In fact, in companies with an E / P ratio, the systematic risk (β) was lower. Other research findings show that there is a positive relationship between earnings per share (EPS) and future sales growth. The results also indicate an inverse relationship between earnings per share (EPS) and systematic risk (β).
seyyed ali paytakhti oskooe; Hassan Hadipour; hasan aghamiry
Abstract
The value at risk as one of the risk measurement criteria can be used to determine the Stock Optimal Portfolio. The main objective of this study is to determine the optimum portfolio of shares using value at risk. To this end, data from the weekly prices of the stock of 17 selected cement companies (which ...
Read More
The value at risk as one of the risk measurement criteria can be used to determine the Stock Optimal Portfolio. The main objective of this study is to determine the optimum portfolio of shares using value at risk. To this end, data from the weekly prices of the stock of 17 selected cement companies (which their data have been available) has been used during the period January 2012 to March 2017. First, the value at risk for each share is calculated using a parametric approach and a variance-covariance method, and the optimal portfolio weights are comprised of the shares of the companies mentioned. Then employing nonlinear planning, optimization of the stock portfolio with the lowest value at risk was performed with respect to the expected returns. Based on the empirical results, the highest weight in the optimal portfolio belongs to the stock, which has high expected returns and has the lowest value at risk among the companies under study.
Amir Hossein Erza; Moslem Peymany; Farnaz Seifi
Abstract
Credit risk is one of the most important risks that affect Monetary and financial institutions. The main purpose of the paper is to assess the effect of credit risk on stock returns. Firstly, by reviewing the theoretical foundations, researches and expert opinion, quantitative and qualitative factors ...
Read More
Credit risk is one of the most important risks that affect Monetary and financial institutions. The main purpose of the paper is to assess the effect of credit risk on stock returns. Firstly, by reviewing the theoretical foundations, researches and expert opinion, quantitative and qualitative factors influencing the credit rating were determined. Then a questionnaire prepared according to the experts' opinions based on the Iranian environment, the degree importance of the indicators was determined and Using the Topsis model, the ranking of 106 Tehran Stock Exchange (TSE) companies in 2011-2015 was based on credit risk with the same and different significance of the indicators Then, based on the results of the ranking, stock portfolios was formed, finally, the effect of credit risk on stock returns in two different situations With the same and different significance were determined. According to the results, the effect of credit risk on returns in both of the same and different degree of importance, by analyzing the combined data, meaningless and by analyzing panel data, is meaningful and reverse.
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 ...
Read More
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.
Navid Paidarmanesh; Mahdi Salehi; Matina Khorami Kakhki; Mahdi Moradi
Abstract
According to the agency theory, signaling theory, Stakeholder theory, asymmetry information theory and proof of the users of financial statements need to this information and its confirm by independent auditor, therefore we study the relationship between independent audit quality and disclosure quality ...
Read More
According to the agency theory, signaling theory, Stakeholder theory, asymmetry information theory and proof of the users of financial statements need to this information and its confirm by independent auditor, therefore we study the relationship between independent audit quality and disclosure quality of financial statement In this research. The study covers a period from 2009 to 2013 for companies in the Stock Exchange of Tehran. Audit quality is the independent variable in this research that measured by auditor industry specialization, auditor tenure, reputation and quality of audit firm, antiquity and experience of auditor and audit fees. And disclosure quality is dependent variable that measured by given annually point to companies. We use the R software for analyze the model. This study has six hypothesis for each of six independent variables. According to the statically results for research model, all of the six hypothesis rejected and we find that there is no significant relationship between each of independent variables and disclosure quality. According to rejection of all of the hypothesis, we conclude that there is no relationship between independent audit quality and disclosure quality of financial statement Tehran Stock Exchange companies.
Vahid Mollaimani; Mohammad Marfou
Volume 12, Issue 45 , April 2015, , Pages 59-80
Abstract
The speed of transferring of accounting information fromtransferors to users is so important that it is mentioned in accountingconceptual framework as a qualitative characteristics of accountinginformation. Barriers and problems discovering in informationchannel between transferors and users not only ...
Read More
The speed of transferring of accounting information fromtransferors to users is so important that it is mentioned in accountingconceptual framework as a qualitative characteristics of accountinginformation. Barriers and problems discovering in informationchannel between transferors and users not only can Accelerates thetransmission of information but also can benefit users more. In thisresearch we investigate the relationship between disclosure qualityand audit report lag for 164 companies of Tehran Stock Exchangebetween the years of 1387 to 1391. We use disclosure quality ranking,management forecast error and prior period adjustments as therepresentatives of disclosure quality and test them with audit reportlag in E views and SPSS software. The findings of panel analysisshows that there is a significant negative relationship between auditreport lag and dependent variables, management forecast error andprior period adjustments. The final result shows a positive relationshipbetween disclosure quality and audit report lag. Furthermore there issignificant negative relationship between company size and auditreport lag and there is no relationship between auditor sizes, havinggood news or bad news and company debts with audit report lag
Mohamad Arab mazar yazdi; Ahmad Badri; AFSHIN Azizian
Volume 10, Issue 39 , October 2013, , Pages 1-27
Abstract
Herding behavior is among the most noticed biases in behavioral finance. This bias implies that investors unknowingly neglect personal information and analyses; instead they tend to follow other investors or the whole market. Using Tehran Exchange stocks transactions data, this study empirically ...
Read More
Herding behavior is among the most noticed biases in behavioral finance. This bias implies that investors unknowingly neglect personal information and analyses; instead they tend to follow other investors or the whole market. Using Tehran Exchange stocks transactions data, this study empirically examines herding behavior in this market. Two models based on cross-sectional deviation of stock returns and another model based on beta in state-space structure are utilized in our research. The sample covers 21,112 weekly returns and transaction volumes observations from April 2005 to April 2011. Our findings indicate that participants often lack independent investment decisions; i.e. they prefer following other investors’ decisions to taking an independent approach. This confirms that herding behavior exists in Tehran Stock Exchange. Moreover, evaluating comparative power of our three models suggests that the model based on beta is more powerful in explaining herding behavior than the other model.
