Financial Accounting
Alireza Javadipour; jafar babajani; Ghasem blue; vajhollah ghorbanizadeh
Abstract
Due to the lack of comprehensive research in the country in order to provide a model to evaluate the performance of the audit committee, the present research has addressed this issue and a practical model for the use of the activities of the audit committee has been presented.Method: The research method ...
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Due to the lack of comprehensive research in the country in order to provide a model to evaluate the performance of the audit committee, the present research has addressed this issue and a practical model for the use of the activities of the audit committee has been presented.Method: The research method used in the first stage of the research was extracting the dimensions, components and performance evaluation indicators of the audit committee from the theoretical sources of the research. Then, the fuzzy Delphi method was used to screen the indicators, and the best-worst (BWM) multi-criteria decision-making method was used to weight each dimension, component, and index.Findings: The model obtained in the current research includes 3 parts of evaluating the individual characteristics of the members of the audit committee, evaluating the work processes and reporting of the audit committee, and evaluating its duties and responsibilities, and the final model includes 3 dimensions, 13 components and 78indicator.Conclusion: According to the findings of the research, the important components in evaluating the performance of the audit committee are the audit committee meetings, the audit committee resources, communication with the board of directors, the audit committee charter, and monitoring of financial reporting. Also, the results showed that the working and reporting processes of the audit committee have the most weight in the evaluation of the audit committee's performance, and the evaluation of the audit committee meetings as the focus of the audit committee's activities is the most important among the evaluation components.
Financial Accounting
Javad Shekarkhah; Mohammad javad Salimi; Seyed Soroush Ghazinoori; Ali Hedayati Bilondi
Abstract
Pension funds in Iran use defined benefit pension plan and their sustainability is important. However, the evaluation of their sustainability has always been criticized. Minimum reporting and simple accountability indicators do not meet the informational needs of stakeholders. Thus, the main issue is ...
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Pension funds in Iran use defined benefit pension plan and their sustainability is important. However, the evaluation of their sustainability has always been criticized. Minimum reporting and simple accountability indicators do not meet the informational needs of stakeholders. Thus, the main issue is to identify the indicators and standards for comprehensive evaluation of financial sustainability. To address this issue, the theoretical foundations of sustainability evaluation of pension funds and the indicators applied by other countries and international organizations were examined. The indicators were presented to experts for receiving their opinions and in order to reach a consensus on key indicators a fuzzy Delphi method was applied. For ranking and developing a combined indicator, the final indicator was obtained using experts' opinions and the SWARA method. 27 indicators in four dimensions were extracted from the theoretical foundations: equity, adequacy, financial, and innovation. According to the results of the fuzzy Delphi method, 15 key indicators were confirmed finally. Among the key indicators, the support ratio obtained the first rank, while the replacement rate and penetration coefficient obtained the second and third ranks, respectively. The results of the SWARA method confirmed the combined indicator consisting of equity dimension (1 sub-indicator), adequacy dimension (3 sub-indicators), and financial dimension (11 sub-indicators). The weight of equity, adequacy and financial in the combined indicator is equal to 6%, 21%, and 73%, respectively. The support ratio, present value of Assets to Liabilities Ratio, and actuary analysis obtained ranks 1 to 3. the financial dimension has the highest importance,
Financial Accounting
Mehdi Dasti; Mohammad Firouzian Nezhad; Ali Mahmoodi
Abstract
The purpose of this study is Evaluating the reduction of the government's financial burden through the typology of drivers affecting generational accounting in the capital market by action research. In terms of methodology, this study has used Colaizzi's model (1978) to implement action research ...
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The purpose of this study is Evaluating the reduction of the government's financial burden through the typology of drivers affecting generational accounting in the capital market by action research. In terms of methodology, this study has used Colaizzi's model (1978) to implement action research steps. Therefore, based on this model, first, through interviews with experts and open coding, an effort was made to identify n Effective drivers on the implementation of generational accounting in capital market companies. Then, in order to validate the propositions, a critical evaluation was done to compare the propositions with similar researches, so that the propositions can enter the stage of forming a focus group to discuss and exchange opinions for the cognitive separation of each proposition in the form of a category. Then, through Q evaluation checklist, each statement was scored between +4 and -4, and finally, a 4-level matrix was created with the aim of creating a foundation of effective drivers in the implementation of generational accounting with the aim of reducing the government's financial burden on future generations. The results showed that a total of 22 propositions were identified from a total of 12 interviews and 217 open codes created. On the other hand, it was determined in the quantitative section, 22 criteria identified in 4 categories were the creators of the generational accounting typology framework of capital market companies.
Financial Accounting
mohamad marfo; Mohammad javad Salimi; iman Raeesi Vanani; mojtaba alifamian
Abstract
Purpose-The rapid development of technology and extensive environmental changes has accelerated economic growth and the increasing competition of enterprises has restricted access to profit and increases the probability of enterprises ' financial distress. Due to the effects of high costs of financial ...
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Purpose-The rapid development of technology and extensive environmental changes has accelerated economic growth and the increasing competition of enterprises has restricted access to profit and increases the probability of enterprises ' financial distress. Due to the effects of high costs of financial distress, its prediction has attracted the attention of researchers since the beginning. Therefore, this paper aims to the bibliometric analysis of financial distress research in accounting, management and economic areasDesign/methodology/approach: The research method is based on a three-step protocol of dataset setting, the dataset refining, and analyzing the data. First, the published articles in the financial disterss field were collected from the Web of Science database. Second, the document information is refined and 801 articles were chosen to review literature of this district. Finally, we used the bibliometric analysis toolbox to investigate the documents. Also, bibliometric analysis in this research has been conducted using VOSviewer software.Findings- The findings of this research indicate the existence of six main streams of research (methods of predicting financial distrss, predictors of financial distress, restructuring strategy, corporate governance, bank bankruptcy and earning management) in the field of financial distrss. Also, the results of the research, in addition to indicating the importance of social responsibility of the company, also highlight the fact that with the technology improvement, the use of artificial intelligence tools has increased predicting accuracy.
Financial Accounting
Abas Aflatooni; kefsan mansouri; Zahra Nikbakht
Abstract
The accounting information quality and its relationship with financing decision-making is one of the important issues which attract interest from researchers. However, how the accounting information quality affects financing costs during the COVID-19 pandemic is a topic that has not been considered in ...
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The accounting information quality and its relationship with financing decision-making is one of the important issues which attract interest from researchers. However, how the accounting information quality affects financing costs during the COVID-19 pandemic is a topic that has not been considered in domestic research. The purpose of this research is to investigate the effect of the accounting information quality on the cost of debt and to investigate how this effect occurred during the pandemic of COVID-19. In this regard, the data from 137 firms listed on Tehran Stock Exchange during 2012-2022 (1057 firm-years) have been used. The generalized least squares (GLS) approach has been used to fit the models and years and industries fixed effects has also been controlled. The research results for the entire period show that an increase in accruals quality (as a proxy for accounting information quality) decreases the cost of financing through debts and this decrease is more for innate accruals quality than that of discretionary accruals quality. In addition, the findings indicate that during the period of the COVID-19 pandemic, the intensity of the effect of accruals' quality and its innate and discretionary components on the cost of debt has decreased. The results of the robustness tests using decile-ranked values of accruals quality confirm the main findings.
Financial Accounting
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. Due to the multiplicity of ...
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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. Due to the multiplicity of calculation methods in scenario analysis, this study cannot necessarily follow a specific pattern and uses a separate method to answer the formulated questions according to each section. Therefore, based on the nature of collection, this study can be classified as mixed method. 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. In fact, the result obtained in this study shows that accounting is used as a legacy in family-owned structures in order to meet the needs of the powerful person as the owner of influence on the structural functions of companies.
Financial Accounting
Behrooz Badpa; sohrab osta; Fatemeh Darvish-Hoseini
Abstract
Working capital management is crucial for business growth and survival as it maximizes enterprise value and shareholder wealth, thereby maintaining competitive conditions and optimal performance. This study identified and explained accounting variables determining operational efficiency (OE) of the companies ...
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Working capital management is crucial for business growth and survival as it maximizes enterprise value and shareholder wealth, thereby maintaining competitive conditions and optimal performance. This study identified and explained accounting variables determining operational efficiency (OE) of the companies listed on the Tehran Stock Exchange (TSE), Iran, in light of working capital items. The statistical population consisted of all companies, and the samples were 112 cases listed during 2016-2020. Utilizing an applied, descriptive-correlational research design, the relationship between the variables was then established. The dependent variable was OE, evaluated using data envelopment analysis (DEA); and the independent ones were working capital items and dividend growth rate. To investigate the effect of the independent variables on the dependent one, eight hypotheses were formulated, and multivariate linear regression with panel data in a fixed-effects model was implemented to check them. Testing the hypotheses at 95% confidence interval demonstrated that average period of collection of claims, average debt repayment period, dividend growth ratio, cash holding level, and liquidity ratio have a significant positive effect on OE. Nevertheless, cash conversion cycle, and average inventory turnover period have negative impacts. Managers are thus suggested to identify working capital items and exploit them along with short/long-term goals in companies. This is practical in evaluating financial flexibility and solvency, facilitating optimal liquidity, and increasing business profitability and performance. Furthermore, learning about such items is helpful to investors, creditors, and analysts to make optimal decisions.
Financial Accounting
Sajad Naghdi; Roghayye Jeddi
Abstract
The willingness of accountants to participate in the certified public accountant (CPA) exam has led to a highly competitive and challenging environment. Therefore, the aim of this research is to explore the lived experiences of CPA candidates. Given the psychological orientations, the unique scientific ...
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The willingness of accountants to participate in the certified public accountant (CPA) exam has led to a highly competitive and challenging environment. Therefore, the aim of this research is to explore the lived experiences of CPA candidates. Given the psychological orientations, the unique scientific and social structure of the candidates, and the multi-dimensionality of the exam, an interpretive paradigm and the qualitative method of phenomenology were employed for an in-depth study without statistical calculations. This study involved 37 participants, comprising 16 CPAs and 21 individuals who were rejected candidates, chosen through purposeful sampling. Data collection was conducted using the semi-structured interview method until the theoretical saturation limit was attained. Data analysis was carried out in five stages using Giorgi's method. The analysis yielded four main themes: weaknesses and limitations, structural challenges, strengths, and solutions to enhance the exam's quality. Each main theme encompassed three sub-themes with 99 narratives. Additionally, despite differing perspectives among candidates, a strong emphasis on the lack of educational resources, particularly in accounting and auditing courses, was noted. The findings also highlight a need to broaden the exam's scope to cover technical skills and reduce theoretical questions. Overall, the research underscores the significance of developing educational resources and focusing on practical questions to address the primary concerns of the candidates. IntroductionThe willingness of accountants to participate in the certified public accountant (CPA) exam has led to a highly competitive and challenging environment. Therefore, the aim of this research is to explore the lived experiences of CPA candidates. Since the accounting profession is continuously evolving and its complexity is increasing every day, it is necessary to consider this dynamic in the process of determining the qualification of certified public accountant. Some professionals have raised concerns about the design of the CPA exam, particularly regarding questions that are incorrectly framed, ambiguous, or have multiple or no correct answers. This issue often leads to candidates wasting time on such questions during the exam, a loss that cannot be compensated. Furthermore, the exam's administration also poses problems, such as an unfavorable physical environment and the use of non-professional proctors, contributing to stress. These factors collectively result in anxiety and psychosis both during and after the exam. Therefore, the systematic evaluation of various dimensions of the certified public accountant exam with the direct participation of the candidates can help identify and rectify the existing gaps and limitations. The findings from this research could then inform policy-making and program formulation within the certified accountant community.Literature ReviewConsidering the importance of the role of certified public accountant in society, the process of selecting and verifying their qualifications is also very important. For the first time, at the end of the 19th century, chartered accountants emerged as an institution in Britain, which at that time had the most advanced financial and economic system. Early in the 20th century, this institution started working in the United States of America. However, the pathology of the process of determining the qualification of a certified public accountant in Iran has shown several key challenges. These challenges include exam content and conducting method, necessary features to become a CPA, certification conditions and exam structure.MethodologyGiven the psychological orientations, the unique scientific and social structure of the candidates, and the multi-dimensionality of the exam, an interpretive paradigm and the qualitative method of phenomenology were employed for an in-depth study without statistical calculations. This study involved 37 participants, comprising 16 CPAs and 21 individuals who were rejected candidates, chosen through purposeful sampling. Data collection was conducted using the semi-structured interview method until the theoretical saturation limit was attained. Data analysis was carried out in five stages using Giorgi's method.ResultsThe analysis yielded four main themes: weaknesses and limitations, structural challenges, strengths, and solutions to enhance the exam's quality. Each main theme encompassed three sub-themes with 99 narratives. Additionally, despite differing perspectives among candidates, a strong emphasis on the lack of educational resources, particularly in accounting and auditing courses, was noted. The findings also highlight a need to broaden the exam's scope to cover technical skills and reduce theoretical questions.DiscussionObtaining the title of a CPA is a coveted goal for accountants from the onset of their careers. Consequently, it is essential to ensure that individuals who successfully navigate through the CPA qualification process possess the minimum required skills and expertise. The dynamic nature of economic, social, technological, environmental, and legal components continually influences the competencies and capabilities required of certified public accountants. Currently, the CPA exam in Iran faces criticism from professional accounting members, highlighting a clear concern: the existing procedures for determining the qualifications of CPAs are not adequately keeping pace with the rapid environmental changes.ConclusionIn general, the findings of this study indicate the importance of developing educational resources and focusing on practical questions, reflecting the primary concerns of CPA exam candidates. The lack of educational resources were emphasized by the majority of participants. Therefore, it is necessary for the community of certified public accountants to collaborate effectively with academic professionals. This collaboration should aim to produce textbooks and exam questions that are closely aligned with the curriculum, particularly in areas of accounting and auditing. It is recommended to include questions that assess talent skills such as comprehension, reasoning, and verbal abilities, as well as technical competencies like computer and Excel skills. Furthermore, the design of the questions should be such that they can be answered effectively only by candidates with relevant work experience (practical work) and those who have engaged in extensive and in-depth study (beyond mere memorization) of the subject matter. Considering the nature of the CPA exam, it is suggested to incorporate a wide range of questions to thoroughly evaluate a candidate's knowledge across all subjects. This approach should extend beyond just a few standards or specific areas to ensure that the candidates possess a well-rounded understanding of the entire curriculum.
Financial Accounting
Mohammad Hossein Setayesh; Zahra Rezaeianzadeh
Abstract
The main goal of this research is to identify and rank factors affecting innovation in accounting. In this research, firstly, accounting specialists were selected by purposeful sampling methods, and then qualitative data were collected using open questionnaires. After analyzing the collected data using ...
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The main goal of this research is to identify and rank factors affecting innovation in accounting. In this research, firstly, accounting specialists were selected by purposeful sampling methods, and then qualitative data were collected using open questionnaires. After analyzing the collected data using the phenomenology method, 11 factors were identified. Subsequently, a survey involving 17 faculty members from the accounting departments of Iranian public universities was conducted, and the Bayesian best-worst method was employed to rank these identified factors. Based on the results, the top 3 factors affecting innovation in accounting, in order of importance, include advances in information technology, changes in the business environment, and the level of financial knowledge and analytical skills of accountants. In order to improve the context of innovation in accounting, the results of this research suggest accountants should have general information about business and advances in information technology. They also, as the human capital of the innovation process in accounting, should continuously improve their level of financial knowledge and analytical skills.IntroductionIn recent years, the information technologies, such as cloud service models, big data, artificial intelligence, and blockchain are rapidly transforming the business environments and have raised concerns about the future of the accounting profession. Although these emerging technologies are still designed for the day-to-day work of accountants, they can significantly change the future work of accountants (Moll & Yigitbasioglu, 2019). It seems that in the face of the said technologies, the provision of accounting services, such as bookkeeping, preparing financial statements, preparing tax returns, and auditing, have all been subject to radical innovations (Bowles et al., 2020). According to the accounting literature, a new set of skills is necessary for accountants due to these emerging technologies. This is while job advertisements of Iranian companies (https://www.irantalent.com), still demand traditional job roles for accountants and instead, new job titles, such as fraud investigation specialist and senior data analyst have been emerging that can cover the newly defined job roles of accountants by literature. It seems that to reinforce the position of accountants in organizations, a change in accounting and in other words, the search for innovation in accounting is necessary.To address the lack of accounting literature in the field of innovation, the primary objective of this study is to identify and rank the factors that impact innovation in accounting by using qualitative methods, to initiate the expansion of innovative thinking and the creation of innovative ideas in accounting.MethodologyThis study used the phenomenology method to identify the factors affecting innovation in accounting. The accounting specialists were chosen as an informant using purposeful and snowball sampling methods. The twelve accounting specialists who participated in the research offered a wide range of services, including auditing, consulting, financial statement preparation, and tax accounting. Data collection was carried out mainly by means of an unstructured questionnaire supported by a telephone interview. Finally, by the use of Colaizzi’s method of data analysis, the factors affecting innovation in accounting were identified (Wirihana et al., 2018, p. 31).The Bayesian best-worst method was selected to rank the factors affecting innovation in accounting. The decision-makers were seventeen faculty members in the accounting department of Iranian public universities who had publications that transfer the concept of some sort of innovation in accounting. Bayesian best-worst method is based on pairwise comparison (Mohammadi & Rezaei, 2020). Pairwise comparison data from the decision-makers who participated in the research was collected through a standard questionnaire. Finally, using Python code for the chosen method, the factors affecting innovation in accounting were ranked.Results and DiscussionAccording to the results of Colaizzi’s method of data analysis, eleven factors were identified, and using the Bayesian best-worst method, the optimal weight of all factors was calculated. Table 1 presents the overall optimal weight and rank of factors affecting innovation in accounting. The findings indicate that the factors of advances in information technology (0.127806), changes in the business environment (0.12760311), and the level of financial knowledge and analytical skills of accountants (0.10951763) are respectively the most important factors. According to the optimal weight of all factors, it can be seen that none of the factors are irrelevant to innovation in accounting, because the weight of the least important factor is equal to 0.06665689. In fact, neither factor has an optimal weight lower than 0.065.ConclusionThe field of research into innovation in accounting is new, therefore this research generates new insight into the area. Among the practical implications, the study suggests that accountants consider environmental factors, such as advances in information technology and constantly update their knowledge and skills. It also suggests that they should improve their overall business knowledge by familiarizing themselves with different companies' operations and financial processes. Moreover, it suggests that they develop their analytical skills to be able to clarify the implications of decision-making results. Lastly, this study suggests that to achieve innovation in accounting, the conduct of research related to innovation and the cooperation of accountants can generate ideas to improve innovation in accounting.The study was qualitative in nature, as a result, this study cannot argue that the nature of innovation in accounting and the factors affecting it remain unchanged over time. Therefore, this study recommends more research in this field to contribute to a better understanding of innovation in accounting.
Financial Accounting
Zahra Eslami fard; Omid Pourheidari; Amirhossein Taebi naghandari
Abstract
Accounting is a reflection of the performance of economic entities, influenced by numerous factors. Culture is one of the most important factors influencing the development of accounting. This study explores how gender and social identity moderate the relationship between Islamic cultural values and ...
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Accounting is a reflection of the performance of economic entities, influenced by numerous factors. Culture is one of the most important factors influencing the development of accounting. This study explores how gender and social identity moderate the relationship between Islamic cultural values and the performance and attitudes within the auditing profession .This research follows an applied approach and employs a descriptive survey methodology. The study's population included all employees of the Audit Organization of Iran and doctoral students in accounting. A statistical sample of 384 individuals, composed of employees from the Iran Auditing Organization and accounting PhD students, was randomly selected based on Cochran’s formula for the year 1400. Data analysis was performed using the Structural Equation Modeling (SEM) approach with the Smart PLS software. The results indicated that there is a significant relationship between Islamic cultural values and employees' job performance and attitude. The study revealed that gender influences the relationship between Islamic cultural values and performance and attitudes within the auditing profession. However, social identity was found to have no significant impact on this relationship. Social identity has no effect on the relationship between cultural values of Islam and the function and attitude of the auditing profession. In conclusion, it is advisable to promote Islamic cultural values within the auditing profession to enhance ethical standards and professional competence.IntroductionThe increasing development and diversification of economic activities have led to the expansion of the capital market and the scope of activities of joint stock companies. Therefore, the duty and responsibility of professional auditors toward society and capital owners necessitates their adherence to a well-defined and consistent professional code of conduct, fostering acceptance, credibility, trust, and social respect (Turner, 2006).Career attitude is essentially an assessment of an individual's job, encapsulating their feelings, beliefs, and attachment to their occupation. Several variables influence the improvement of job attitudes, including age, education level, gender, work environment, years of service, competition, individual skills, job-specific skills, as well as the education and management approaches employed by audit supervisors (Kabir & Parvin, 2011).One of the most important factors influencing the development of accounting in any country is culture.Literature Review2.1. The effect of Islamic cultural values on the function and attitude of the auditing profession.Based on this discussion, the following hypotheses are presented:Hypothesis 1: There is a significant relationship between Islamic cultural values and the employees’ performance.Hypothesis 2: There is a significant relationship between Islamic cultural values and auditing staff’s job attitudeHypothesis 3: There is a significant relationship between the job attitude and performance of audit staff2.2 The effect of gender on the relationship between Islamic cultural values and the function and attitude of the auditing profession.Hypothesis 4: Gender affects the relationship between cultural values of Islam and auditing staff’s performance.Hypothesis 5: Gender affects the relationship between Islamic cultural values and auditing staff’s job attitude.Hypothesis 6: Gender affects the relationship between job attitude and audit staff performance.2.3. The effect of social identity on the relationship between Islamic cultural values and the function and attitude of the auditing profession.Hypothesis 7: Social identity affects the relationship between Islamic cultural values and auditing staff’s workHypothesis 8: Social identity affects the relationship between Islamic cultural values and auditing staff’s job attitude.Hypothesis 9: Social identity affects the relationship between job attitude and performance of audit staff.MethodologyThe research is applied and descriptive in nature, aiming to describe the effect of research variables during their implementation stages. The research population comprised employees of the Iran Auditing Organization and PhD students in auditing. We randomly selected a sample of 384 individuals based on Cochran's formula.To assess the fit of the measurement models, we employed criteria such as reliability and convergent validity. We evaluated questionnaire reliability using factor loading coefficients, Cronbach's alpha coefficient, and composite reliability. Data analysis involved the use of descriptive statistics as well as inferential statistics.ResultsThe purpose of this research was to examine the moderating role of gender and social identity in the relationship between Islamic cultural values and the function and attitude of the auditing profession. The results support the presence of a significant relationship between Islamic cultural values and auditor function, which aligns with the findings of Sayadi and Azizi (2016) and Hosseini and Babaei (2017). Additionally, the results reveal a significant connection between Islamic cultural values and auditor job attitudes, consistent with the findings of Sayadi and Azizi (2016) and Hosseini and Babaei (2017). Furthermore, the third hypothesis, suggesting a significant relationship between job attitude and audit staff performance, was confirmed, in accordance with Ali Fari et al.'s (2016) findings.The results indicate that gender significantly influences both Islamic cultural values and the performance of audit staff. Furthermore, gender has an effect on the relationship between Islamic cultural values and auditing staff’s job attitude. This result is inconsistent with the findings of Bani Mahd and Darvish (2015).The results also show that gender has an effect on the relationship between job attitude and performance of audit staff. This is consistent with the findings of Christensen et al. (2016), Sajjadi et al. (1401).Additionally, the results reveal that social identity does not affect the relationship between Islamic cultural values and auditing staff’s work. This is inconsistent with the findings of Badpa (2019).The results also show that social identity has no effect on the relationship between Islamic cultural values and auditing staff’s job attitude. This is in line with the findings of Ali Fari et al. (2016).Lastly, the results show that social identity has no effect on the relationship between job attitude and performance of audit staff. This is in line with the findings of Ali Fari et al. (2016). However, it is in contrast with the findings of Ebrahimzadeh et al. (1400) and Haqbin et al. (1401).AcknowledgmentsThe authors of the article express their appreciation and gratitude to the Islamic Azad University of Kerman branch.
Financial Accounting
Mohammad ali Karimi; Gholamreza Kordestani; . Kumars Biglar
Abstract
The public financial management system in developing countries faces ongoing challenges. These challenges include ensuring the compatibility of budget planning and discipline with macroeconomics, resource allocation in accordance with poverty reduction strategies, and effectively implementing programs ...
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The public financial management system in developing countries faces ongoing challenges. These challenges include ensuring the compatibility of budget planning and discipline with macroeconomics, resource allocation in accordance with poverty reduction strategies, and effectively implementing programs and activities while monitoring results. This research was conducted to identify the challenges of the public financial management system in the country. This qualitative study utilized the content analysis method to analyze data collected between 1400-1401. The required information was collected and analyzed through semi-structured interviews conducted with 15 experts to identify the challenges related to the country's public financial management systems. The challenges related to various public financial management sub-systems including the tax system, treasury system, asset and debt management system, budgeting system, accounting and financial reporting system, audit system, and performance evaluation system were identified in four elements, financial and non-financial resources, management and governance system, institutional framework, and support structures and in twelve dimensions including lack of financial resources, weak infrastructure and equipment, human resource problems, weakness in executive and operational processes, insufficient support of managers, influence and lobbying, lack of accountability, weak rules and standards, lack of transparency, weak training, non-implementation of accrual accounting, and weak performance budgeting. Identifying these challenges can provide a framework for improving the financial management system and help those involved in reforming the public financial management system.IntroductionStrong public financial management can reduce poverty, increase social justice, meet the information needs of stakeholders to assess accountability, and provide the basis for economic and social satisfaction, and contribute to sustainability in different dimensions. To achieve strong public financial management, there is a need to transform the public financial management subsystems.Studies have shown the necessity for reforming public finance management subsystems (Babajani, et al., 2012; Agha Mohammad et al., 2020; Nyamita, et al, 2015). To initiate reforms and strengthen the public financial management system, it is necessary to transition from traditional approaches to new ones that identify existing challenges and obstacles. By resolving them and building capacity, a foundation can be established for reforming the public financial management system. Therefore, the research question at hand is: What are the challenges facing public sector fiscal management?This research aims to introduce the literature related to the subject and explore the less-investigated issues associated with assessing financial management capacity and challenges within its sub-systems. In other words, the objective is to provide a deeper insight for responsible institutions and researchers to evaluate the capacity and challenges of public sector financial management.2-Literature ReviewThe research literature is presented in two parts: challenges related to public financial management sub-systems and assessing public financial management capacity.2-1: Challenges related to government financial management subsystems.Studies have shown that the tax system, treasury system, asset and debt management system, budgeting system, accounting and reporting system, audit system, and performance evaluation system are facing challenges.2-2: Assessing the capacity of public financial managementWhen assessing public financial management systems, the issue of capacity should be considered as crucial. Olander (2007) introduces four interdependent elements that need to be taken into account when assessing and developing public financial management capacity: management, resources, support structures, and the institutional framework. These elements represent the same challenges and limitations that must be identified and strengthened in the evaluation of public financial management. Doing so creates the necessary foundation for reforming and improving public financial management. MethodologyThis research employed a qualitative design. Data was collected through interviews, and the content analysis approach was utilized for analysis. A total of 15 individuals from the public sector were interviewed as part of the research. ResultsThe research results are presented in two parts.4-1) the codes extracted from the interviews are provided in Table.1, which consists of 7 main categories, 12 subcategories (dimensions), and a total of 70 concept elements (challenge factors).4-2) Research Concept Model.Drawing upon the research findings and recognizing that financial management comprises a comprehensive system of subsystems, the challenges associated with these subsystems also reflect the challenges of the overall financial management system. This is illustrated in Figure 1, which identifies 4 elements and 12 dimensions. DiscussionThe challenges related to public financial management subsystems, namely the tax system, the treasury system, the asset and debt management system, the budgeting system, the accounting and financial reporting system, the audit system, and the performance evaluation system can be grouped into four elements: financial and non-financial resources, management and governance system, institutional framework, and support structures. These challenges span across twelve dimensions, including: lack of financial resources, weak infrastructure and equipment, human resource problems, weakness in executive and operational processes, insufficient support of managers, influence and lobbying, lack of accountability, weak rules and standards, lack of transparency, weak training, non-implementation of accrual accounting, and weakness in performance budgeting. Identifying these challenges provides a framework for improving the financial management system and assists those involved in the reform of the public financial management system. ConclusionTo achieve the goals and capitalize on improvement opportunities, the financial management system must address several challenges. These challenges can be overcome through necessary reforms in the public financial management sub-systems, which require cooperation and coordination among executive bodies. The outcome of these reforms and the resolution of challenges will result in a robust public financial management system. This, in turn, will bring about stable financial income, resource discipline and efficiency, increased accountability and transparency, proper management of public funds, and ultimately good governance.However, it is important to acknowledge an important limitation: The breadth of dimensions and sub-systems related to the research subject. Limited access to experts and familiarity with all relevant topics presented a constraint. One potential solution to address the need for skilled human resources in the public sector is the establishment of a public financial management course. By developing the course curriculum in accordance with the actual needs of the public sector, this limitation can be mitigated.
Financial Accounting
mandana taheri; Mahtab Jafari
Abstract
Investor Sentiment often stem from held-up beliefs or information unrelated to stock value and can lead to extreme reactions or low reactions to good or bad news in stock valuation. In this study, the effect of two important policies of Earning sharing and debt policy in the company that can be investigated ...
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Investor Sentiment often stem from held-up beliefs or information unrelated to stock value and can lead to extreme reactions or low reactions to good or bad news in stock valuation. In this study, the effect of two important policies of Earning sharing and debt policy in the company that can be investigated on the behavior and inclinations of investors and then the Moderating effect of management Entrenchment on the relationship. To achieve the purpose of the research, four hypotheses were developed and data collected from 163 companies listed on the Tehran Stock Exchange during the years 2011 to 2021 were tested through regression models. The findings of this study showed that dividend policy increases investors' Sentiment but debt policy decreases investors' Sentiment. Management Entrenchment strengthens the positive relationship between dividend policy and investor sentiment. Therefore, during the dividend policy, the managers are of the shareholders' goals and want a higher dividend payment ratio. Management Entrenchment also reinforces the negative relationship between debt policy and investor sentiment. Therefore, risk-averse managers tend to use less debt, which is also a favorite of investors; because they invest in companies that have the least debt and their capital structure shows the importance of equity.
Financial Accounting
Akram Taftiyan; fatemeh mansuri mohammad abadi; akram abdollahi asad abaadi
Abstract
The current research has investigated the economic consequences of risk perception in annual reports; which is functional in terms of result, correlational and post-event in terms of descriptive method. The statistical population of this research includes all the companies admitted to the Tehran Stock ...
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The current research has investigated the economic consequences of risk perception in annual reports; which is functional in terms of result, correlational and post-event in terms of descriptive method. The statistical population of this research includes all the companies admitted to the Tehran Stock Exchange between 2008 and 2021, and 130 firms were selected as a statistical sample by systematic elimination (1820 observations).In this study, the accounting criteria of company value (rate of return on assets), the market criterion of company value (Tobin's Q) and the economic criterion of company value (added market value) were used to measure the economic outcome. In order to increase the degree of confidence in the results of hypothesis testing, static and dynamic panel data regression method was used. According to the findings of the research, in static modes and using the EViews software, it shows that there is a positive relationship between the market measure of the company's value (Tobin's Q) and the economic measure of the company's value (market value added) in both the static and dynamic modes with the sense of risk in annual reports. But there is no significant relationship between the accounting measure of company value (rate of return on assets) and the sense of risk in annual reports.
Financial Accounting
Seyed Hosein Sajadi; rahim bonabi ghadim
Abstract
Today, information competition space, as an external importance mechanism, affects the company's management system and stable performance and government ownership in both complementary and destructive aspects can affect this impact. The purpose of this study is to investigate the effect of government ...
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Today, information competition space, as an external importance mechanism, affects the company's management system and stable performance and government ownership in both complementary and destructive aspects can affect this impact. The purpose of this study is to investigate the effect of government ownership on the relationship between information competition and Earning persistenceof companies listed on the Tehran Stock Exchange.The statistical sample of the research includes 103 companies listed on the Tehran Stock Exchange for the period 2013 to 2020. In terms of purpose, the present study is an applied research using a post-event approach. For panel data, fixed-effect and random-effect models were used to estimate the research model using Eviews-8 software. The research results showed that information competition based on political relations and centralized institutional ownership increases Earning persistence and the interactive effect of government ownership with information competition further increases Earning persistence. That is, Government ownership and information competition are two complementary factors in achieving the goals of stakeholders.
Financial Accounting
Mohammad Arabmazar Yazdi; Vahid Mennati; Javad Roshanzamir
Abstract
Financial statement comparability improves the quality of financial information and the information environment, and enabling users to identify similarities and differences between different companies, and evaluating the performance of managers and supervising them. So, it is expected that increasing ...
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Financial statement comparability improves the quality of financial information and the information environment, and enabling users to identify similarities and differences between different companies, and evaluating the performance of managers and supervising them. So, it is expected that increasing the comparability of financial statements will limit the opportunism of managers. In this regard, in this study, the relationship between comparability of companies and debt maturity has been investigated. The data of the present study were collected using the financial information of 125 companies listed on the Tehran Stock Exchange in the period 2013 to 2019 (882 observation). To analyze the data, a multivariate linear regression model of the generalized least squares type by utilizing combined data was used. The results showed that there is a negative and significant relationship between the comparability of financial statements and the maturity of the company's debt. Therefore, it can be concluded that the Financial statement comparability plays an important role in aligning incentives in the company and by reducing information asymmetry and potential agency costs, can substitute for the use of short-term debt by serving as a corporate governance mechanism.
Financial Accounting
Karim Imani; Hossein Fakhari
Abstract
Audit task complexity, as one of the important and effective factors on the auditors' judgment and decision-making, is one of the controversial concepts in the audit field, which, due to its multidimensional nature, has led to many researches in the audit field. Despite the provision of individual indicators ...
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Audit task complexity, as one of the important and effective factors on the auditors' judgment and decision-making, is one of the controversial concepts in the audit field, which, due to its multidimensional nature, has led to many researches in the audit field. Despite the provision of individual indicators to measure audit task complexity in these studies, explaining a multidimensional model to measure of this fundamental concept in auditing is a problem that requires to research. It is expected that the explanation of such an index can lead to a better understanding of this concept and its dimensions and help auditors in planning audit task as well as ways to increase the quality of judgment and decision making. Accordingly, the current research purpose is to explain a model to measure for audit task complexity concept. For this purpose, information related to 128 companies in Tehran Stock Exchange during 2010-2019 was collected and tested through Partial Least Squares Structural Equation Modeling. Findings based on Constructive-Constructive measurement model and second-order Confirmatory Factor analysis showed that twenty-one factors effect on audit task complexity. Also, the results showed that audit task complexity is influenced by three dimensions of input, processing and output complexity. These findings, in addition to explaining the concept of audit task complexity, have helped to understand the effective factors and dimensions of this concept and can be useful in auditor's tasks planning and policy making and provide a more powerful tool to increase audit judgment quality.
Financial Accounting
Mohsen Imeni; Seyyed Mohammad Moshashaei
Abstract
The two approaches are more prominent in the accounting literature, accrual-based earnings management and manipulating the actual activities however, the present study is considered the third type of earnings management model, namely a classification shifting. The purpose of this study is to investigate ...
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The two approaches are more prominent in the accounting literature, accrual-based earnings management and manipulating the actual activities however, the present study is considered the third type of earnings management model, namely a classification shifting. The purpose of this study is to investigate the effect of constraints on earnings management strategies on the application of shifting strategy in earnings classification in the Iranian capital market. The research sample consisted of 114 firms from 2013 to 2021 (1026 observation). Logistic regression models have been used to test research hypothesis. The results of the study show that financial health, institutional shareholders, audit firm size and market share have a negative and significant effect on the classification shifting. Also, the operating cycle has a positive and significant effect on the c classification shifting; and its tenure does not have a significant effect on the classification shifting. Additional tests indicated large companies have a greater incentive to do classification shifting (a form of earnings management) compared to small companies, because they have greater political costs.
Financial Accounting
Mahshid Shahrzadi; Darioush Foroughi
Abstract
The Aim of this study is to introduce the left tail risk as a driver for creating idiosyncratic volatility and explainer the negative returns due to high unsystematic volatility. In addition, the present study is trying to determine how the idiosyncratic volatility puzzle occurs. In this study, univariate ...
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The Aim of this study is to introduce the left tail risk as a driver for creating idiosyncratic volatility and explainer the negative returns due to high unsystematic volatility. In addition, the present study is trying to determine how the idiosyncratic volatility puzzle occurs. In this study, univariate and bivariate portfolio analysis as well as Fama and Macbeth (1973) regression have been used. For this purpose, the information of Tehran stock exchange and Iran fara bourse companies during the years 1384 to 1398 has been used. The results of this study indicate the existence of the idiosyncratic volatility puzzle (the low (high) returns of high (low) idiosyncratic volatility stocks) and left tail risk anomaly (the low (high) returns of high (low) left tail risk) in the research sample. The idiosyncratic volatility puzzle (the low (high) returns of high (low) idiosyncratic volatility stocks) is no longer detected when idiosyncratic volatility-sorted portfolios are neutralized to left tail risk, regression control for left tail risk and factor models include a left tail risk factor. The left tail risk plays the important role to explain idiosyncratic volatility puzzle (the low returns of high idiosyncratic volatility stocks) and the reason for this explanation is the falling stock price pressure with high left-tail risk on stocks with high unsystematic volatility.
Financial Accounting
Abbas Aflatooni; Zahra Nikbakht; Kefsan Mansouri
Abstract
The existence of firms' excess cash causes resources to stagnate and, cash deficit causes loss of investment opportunities. Therefore, firms generally try to maintain an optimal level of cash holdings. In addition, firms attempt to quickly correct any deviations from the optimal level of cash holdings. ...
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The existence of firms' excess cash causes resources to stagnate and, cash deficit causes loss of investment opportunities. Therefore, firms generally try to maintain an optimal level of cash holdings. In addition, firms attempt to quickly correct any deviations from the optimal level of cash holdings. The level of cash holdings and the speed of correcting the gap between the actual and the optimal level of cash holdings depend on several factors. The purpose of this study is to investigate the effect of the firm's business strategies (defenders and prospectors) on the level of cash holding and its speed of adjustment. In this regard, the data of 120 firms listed on the Tehran Stock Exchange (TSE) during 2013-2020 (960 firm-years) have been used. The static models are estimated using ordinary least squares (OLS) estimator and, the system generalized method of moments estimator (GMM) is used to estimate dynamic models. The results show that the prospectors have a smaller cash holdings ratio than defenders, and also, the prospectors have lower cash holdings speed of adjustment than defenders. The results of supplementary tests that confirm the research's main findings are consistent with the predictions made in trade-off theory.
Financial Accounting
Narges Hamidian; Golnaz Eshaghi
Abstract
The relevance and usefulness of accounting information can be measured by the simultaneous relationship between accounting information, returns or stock market prices. The Comparability of accounting information, as a qualitative feature of information, increases the value relevance of accounting information. ...
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The relevance and usefulness of accounting information can be measured by the simultaneous relationship between accounting information, returns or stock market prices. The Comparability of accounting information, as a qualitative feature of information, increases the value relevance of accounting information. Also opacity in financial reporting through the corporate financial system increases stock volatility and, as a result, increases investment risk and investor distrust. Accordingly, the purpose of this study is the effect of comparability of financial statements and opacity in financial reporting on the value relevance between earnings and book value per share. Accordingly, a sample of 137 companies was selected from the companies listed on the Tehran Stock Exchange during the years 2013 to 2019 and to test the hypotheses, a multivariate regression model using the panel data method was used. The results showed that earnings and book value per share have a value relevance and the comparability of financial statements increases the value relevance of earnings per share. But contrary to the literature, comparability reduces the value relevance of book value per share. On the other hand, the opacity of financial reporting reduces the value relevance of book value per share due to comparability of financial statements, but does not affect the value relevance of earnings per share due to comparability.
Financial Accounting
Reza Taghizadeh; Mohammad Abdzadeh Kanafi; alieh ghermezi
Abstract
This study examines earnings quality in the relations network of the board of directors of companies in the Iranian stock market in the period 2011 to 2020. This study has a quantitative approach that is post-event in terms of implementation. Furthermore, it is based on graphic techniques on graph theory. ...
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This study examines earnings quality in the relations network of the board of directors of companies in the Iranian stock market in the period 2011 to 2020. This study has a quantitative approach that is post-event in terms of implementation. Furthermore, it is based on graphic techniques on graph theory. Network analysis and regression analysis were used to conduct research tests. Findings showed that in the communication network of companies, some of them are in a better position and have more access and effectiveness. Better location can lead to easier access to information and resources faster. Also, the results of testing the hypotheses showed that there is no significant relationship between the betweenness centrality, and earnings quality. But there is a significant negative relationship between the degree centrality and earnings quality and a significant positive relationship between the closeness centrality, and the earnings quality. In other words, it can be said that the position in the structure of relationships can somehow affect earnings quality of companies.
Financial Accounting
Mohammad Khatiri; Ali Ghasemi; Mahtab Darvishtabar Ahmad Chali; Omid Mehri Namak Avarani
Abstract
The present study investigates the effect of ownership structure in adjusting relationship between related party transactions and unexpected audit fees in loss-making companies. In this way and order to achieve research objectives; Data of 71 companies were extracted for a ten-year period from the beginning ...
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The present study investigates the effect of ownership structure in adjusting relationship between related party transactions and unexpected audit fees in loss-making companies. In this way and order to achieve research objectives; Data of 71 companies were extracted for a ten-year period from the beginning of 2010 to the end of 2019, the research variables were calculated and the necessary statistical tests were performed. The method of this research is descriptive-correlational and its design is experimental using post-event approach. The Results Findings There is a positive and significant relationship between transactions with related parties and unexpected audit fees, and the independence of board of directors and duality of CEO's role have a significant effect on this relationship. On the other hand, the size of the board and CEO stability; They had no significant effect on this relationship. Conclusion say Transactions with related parties increase the unexpected costs of auditing and the independence of the board of directors and the duality of the role of the CEO reduce the relationship between transactions with related parties and unexpected auditing costs.
Financial Accounting
Iraj Davanipour; Ghasem Blue; Maghsoud Amiri
Abstract
This research aims to present a pattern for measuring the quality of financial statements. To achieve this aim, firstly by reviewing the literature and theoretical background and also running an expert interview, a collection of indexes related to the quality of financial statements are identified, and ...
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This research aims to present a pattern for measuring the quality of financial statements. To achieve this aim, firstly by reviewing the literature and theoretical background and also running an expert interview, a collection of indexes related to the quality of financial statements are identified, and then by using a questionnaire and performing Fuzzy Delphi method and confirmatory factor analysis we have identified indexes which have a significant effect on the quality of financial statements. After that, using the analytic network process, we have measured the relative weight of each of those indexes (7 indexes) regarding their effect on the quality of financial statements. Lastly, by measuring each of the indexes, and then computing the weighted average of measurements of all indexes (7 indexes), the measure of the quality of financial statements is computed. For assessing the validity of the presented pattern, we have used a regression model for 57 companies listed in Tehran Exchange for years from 1394 to 1396. We have shown that consistent with the literature, there is a significant negative relationship between the quality of financial statements and cost of equity. This relationship proves that the presented pattern has enough validity for measuring the quality of financial statements. Results of this research have shown that average of measures of quality of financial statements for 57 selected firms during years 1394 to 1396 are improved.
Financial Accounting
Mosa Bozorg Asl; mohamad marfo; mahdi mahannejad
Abstract
Linguistic features of information provided by business unit management could facilitate the goals of the transmission of economic facts. In recent years, these characteristics have always been considered in research in the field of accounting and behavioral finance. Therefore, this study seeks to examine ...
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Linguistic features of information provided by business unit management could facilitate the goals of the transmission of economic facts. In recent years, these characteristics have always been considered in research in the field of accounting and behavioral finance. Therefore, this study seeks to examine the effect of financial reporting tone on audit fees. The sample consists of 63 companies listed in Tehran Stock Exchange for the period from 2012 to 2019. Financial reporting tone is measured using the model introduced by Muhammad et al (2019). Also, a natural logarithm is used to measure audit fees. The data are analyzed and the hypotheses are tested based on the multivariate regression model and panel data. The findings show that financial reporting tone has a significant negative effect on audit fees. In other words, if the financial reporting tone conveys an optimistic tone, the audit fee will be less. Results indicate that financial reporting tone reflects factors that auditors consider in assessing audit risk.
Financial Accounting
Ali Rahmani; Gholamreza Solimani; Mandana Taheri
Abstract
Interest groups, especially shareholders have demand for Disclosure and Reporting in the capital market and they change their expectations of risk and return based on disclosure of information. Therefore, disclosure has economic consequence for companies that according to the empirical literature, cost ...
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Interest groups, especially shareholders have demand for Disclosure and Reporting in the capital market and they change their expectations of risk and return based on disclosure of information. Therefore, disclosure has economic consequence for companies that according to the empirical literature, cost of capital, information asymmetry and stock liquidity, there are three important consequences of disclosure and reporting. One of the disclosures of companies is risk disclosure in the capital market, especially for banks and financial and credit institutions which it require in the form of financial statements and the Report of the Board to the Stock Forum based on complies with the regulations of the Stock Exchange and the Central Bank of Iran. In this paper, we survey the effect of risk disclosure in bank listed in stock market on cost of capital, information asymmetry and stock liquidity as three important of risk disclosure consequences. For this aim, by using the annual data of 18 banks listed in Tehran Stock Exchange during the years 1390 to 1395 we estimate simple regression with panel data. The results show the main hypothesis (there is a consequential risk disclosure of the banks listed in the stock market), confirms. In addition, risk disclosure has a positive and significant relationship with cost of capital and information asymmetry, but there is no significant relationship between risk disclosure and stock liquidity.