Accounting report
Ali Saqafi; Ghasem Blue; HosseinAli Sohrabi Varzaneh
Abstract
Development of Earnings quality measures, especially Accruals quality measures, has been a critical line of research over more than three decades. Literature indicates that linear-regression-based measures are subject to (suffer from) significant estimation error in non-discretionary accruals estimation. ...
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Development of Earnings quality measures, especially Accruals quality measures, has been a critical line of research over more than three decades. Literature indicates that linear-regression-based measures are subject to (suffer from) significant estimation error in non-discretionary accruals estimation. Therefore, recent research used machine learning algorithms including multilayer perceptron and radial basis neural networks, in order to address the issue. However, being founded on Blackbox approach limits future development and applicability of these methods. So, to address the limitations, we have used Group Method of Handling Data (GMDH) approach, as a Whitebox approach, in order to estimate the accruals. Findings using data from 299 Tehran Securities Exchange listed companies during 1385 to 1397 suggests that GMDH-based models perform superior to regression models and multilayer perceptron neural networks in terms of estimation error measured by mean squared error. Moreover, Cash flow approach in total accruals calculation leads to less estimation error compared to balance sheet approach. As a result, the model developed in this article can be used by market participants such as regulators, analyst and auditors in order to detect probable financial reporting misstatements.
afshin ahmadi looye; Hashem Nikoomaram; Fraydoon Rahnamay Roodposhti; Bahman Banimahd
Abstract
In the present study, for the first time, we investigate the effect of the right of auditor's choice on the Accruals based Earnings management based on Glaser's choice theory. The findings of the empirical Reviews by the use of OLS regression on a sample of 173 active firms in Tehran Stock Exchange during ...
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In the present study, for the first time, we investigate the effect of the right of auditor's choice on the Accruals based Earnings management based on Glaser's choice theory. The findings of the empirical Reviews by the use of OLS regression on a sample of 173 active firms in Tehran Stock Exchange during the period from 2009 to 2018(1730 year-firm) show that accrual based Earnings management for Roach firms is more than unroach firm. The results of this research for the first time show that the process of selecting an auditor in Iran follows an opportunistic approach. Therefore, the findings of this study can help investors and the stock exchange organization of the country in the field of legislation to deal with opportunistic managers, such as access to stock options of the ROARCH Group. In this study, firstly, by studying the theoretical foundations of the publishing of asset-backed securities and other sources of information, such as guidelines issued by the Capital Markets Authority, the International Institutions and International Financial Institutions' Guidelines, the Primary Model The asset back rating was extracted, and then this model was developed for the purpose of obtaining consensus and Delphi Research methodology was subjected to an expert opinion survey and ultimately the final model of asset-backed securities ranking was presented.
Farokh Barzideh; Seyed Mostafa Hasanzadeh Diva
Abstract
According to economic theory, industry-wide component of firm performance is more persistent than the firm- specific component. This paper provided evidence on this assertion and examines the relative persistence of industry-wide profit and firm-specific profit. For this purpose the information of 135 ...
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According to economic theory, industry-wide component of firm performance is more persistent than the firm- specific component. This paper provided evidence on this assertion and examines the relative persistence of industry-wide profit and firm-specific profit. For this purpose the information of 135 companies from 12 industries in the years 1386 to 1393 were used. Consistent with the predictions the results showed that the industry-wide profit is remarkably more persistent than firm-specific profit. Also the industry-wide profit and the firm-specific profit were analyzed to cash flow and accruals. The study of these four components showed that the industry-wide cash flow was the most persistent component and the firm-specific accruals is the least persistent. Moreover the whole industry was divided into two groups of similar and dissimilar and the persistence of industry-wide profit and firm-specific profit were examined in the groups. As a result the industry-wide profit in similar group was more persistent than that in dissimilar group. In addition similarity or dissimilarity has no effect on persistence of firm-specific profit.
SH Hasanpour; R Janjani
Volume 9, Issue 35 , October 2012, , Pages 137-157
Abstract
The present study investigates the prediction earning models and compares the models based on absolute forecast errors. For analyzing the data 232 listed firms Tehran stock exchange (TSE) are used during 1380-1387. Comparing the models is done at the level of the all selected firms and at the level of ...
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The present study investigates the prediction earning models and compares the models based on absolute forecast errors. For analyzing the data 232 listed firms Tehran stock exchange (TSE) are used during 1380-1387. Comparing the models is done at the level of the all selected firms and at the level of the industries. Using panel data analyses, the results show that disaggregation earning has more ability to predict future earnings than aggregation earning. The results also show that there is a significant relationship between operating cash flows components - cash receipts from customers, cash paid to suppliers and cash paid for operating expenses -and future earnings. It means that these items have ability for predicting future earnings. Also the results indicate that there is a significant relationship between accruals components -accounts receivables, prepayments, inventory, depreciation and amortization, accounts payable advanced receipts, other accounts receivables, other accounts payable and other accruals and future earnings. As a result, these items have ability for predicting future earnings.
A Sadr Esfahani; A Saghafi
Volume 9, Issue 34 , July 2012, , Pages 1-32
Abstract
This research examines the consequences of earnings manipulation through real activity and campares it with cosequenses of accrual manipulation based on earnings manipulation models provided by Roychowdhury (2006) and Gunny (2010). Statistical sample consists of listed companies in Tehran Stock Exchange ...
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This research examines the consequences of earnings manipulation through real activity and campares it with cosequenses of accrual manipulation based on earnings manipulation models provided by Roychowdhury (2006) and Gunny (2010). Statistical sample consists of listed companies in Tehran Stock Exchange over the years of 2000 to 2011. Literature Review indicates that real manipulation take place by using mehods such as offering discount, extend more lenient credit terms for sale, overproduction and reduced discretionary expense.Based on literature, firms with low return (first interval to the right of zero inearnings distributions) were detected as suspet firms to real and accrual manipulation. Results indicate an increase in abnormal accruals and abnormal production costs, and abnormal discretionary expenses and operating cash flows in suspect firms. After detecting earnings manipulation proxies, consequence of earnings management through real activities on future profitability and cash flow from operation were examined and compared with accrual manipulation. The Results of testing hypotheses indicate a negative effect of real manipulation on future performance
Mohamad Arabmazar Yazdi; M. Mostafazadeh
Volume 6, Issue 23 , October 2008, , Pages 1-18
Abstract
This study provides events about the impact of Earnings Management on the Value-Relevance of Earnings and Book Value with comparison of short term and long-term discretionary accruals. According to the result of this study, in Tehran Stock Exchange (TSE), Earnings management reduces the value-relevance ...
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This study provides events about the impact of Earnings Management on the Value-Relevance of Earnings and Book Value with comparison of short term and long-term discretionary accruals. According to the result of this study, in Tehran Stock Exchange (TSE), Earnings management reduces the value-relevance of earnings and increases the value-relevance of book value and also the effect of long-term discretionary accruals on the value relevance of earnings and book value is greater than the effect of short-term discretionary accruals on the value relevance of earnings and book value.
Mohsen Khoshtinat; Sbahpoor Esmaeeli
Volume 3, Issue 12 , January 2006, , Pages 27-56
Abstract
This research undertakes the relationship between earnings quality and stock return of the listed companies in the Tehran Stock Exchange.
The aim of this research is to assess whether the investors, analysts, and etc. have comprehend the quality of the accountancy information (earnings quality) and ...
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This research undertakes the relationship between earnings quality and stock return of the listed companies in the Tehran Stock Exchange.
The aim of this research is to assess whether the investors, analysts, and etc. have comprehend the quality of the accountancy information (earnings quality) and utilize it in their decision making process? In order to find the answer to this question we need to take in to account the market reaction.
We can assess and evaluate the market reaction with the use of the accumulated data published and in the following two ways:
1- Volume of transactions
2- Share price and subsequently the stock return
Therefore in this research stock return is an independent variable.
Within the earnings quality assessment criteria, two criteria, the ratio between cash flows resulted from operational activities with operational earning and accruals , are selected and their influence on stock return of listed companies in the Tehran Stock Exchange are examined.
This research considers four hypotheses. In these hypotheses earnings quality, accruals, discretionary and nondiscretionary accruals are considered as independent variables and stock return as dependent variable. The examination of the research hypotheses, with the help of regression analysis during the period of 1379-1383 (Iranian calendar year), shows that there is little influence between earnings quality and stock returns.
