Accounting and various aspects of finance
Mohammad Namazi; Amin Nazemi; Navid Reza Namazi; Esmail Moazzeni
Abstract
In this research, operational budgeting was investigated in the form of four groups of contextual factors, structural factors, human factors and other factors on operational and research budgeting with analytical model, balanced evaluation method. The statistical population of this study is all executive ...
Read More
In this research, operational budgeting was investigated in the form of four groups of contextual factors, structural factors, human factors and other factors on operational and research budgeting with analytical model, balanced evaluation method. The statistical population of this study is all executive bodies subject to Article (5) of the Civil Service Management Law. Data were obtained using 182 questionnaires and analyzed using structural equation method and Smart PLS software. In this model, the balanced evaluation method was adapted to the three-part cycle of performance management and a three-part model of performance management, based on balanced measurement, is obtained. The results showed that the identified structures in operational budgeting have a positive and significant effect on the performance of executive agencies. The structures of “structural factors”, “human factors” and “other factors affecting the implementation of operational budgeting (including personality, acceptance and ability)” have a positive and significant effect on performance, but the structure of “underlying factors” has a significant effect. It does not affect the performance of executive agencies.IntroductionIn traditional budgeting, the goals and emphasis are based solely on financial instruments and accounting of receipts and payments of the public sector (Mio et al., 2022). Also, in the traditional method of budgeting, the ability to plan long-term is limited and the possibility of achieving operations and budget monitoring is very weak.The problem that exists is that organizations pay less attention to budgeting in a new way and as a result, it is not used seriously in strategic decisions. Therefore, the effect of the operational budgeting method on the performance of organizations is not clear (Park & Jang, 2022). On the other hand, despite the sensitivity of the budget and the importance of its economic allocation, this issue has not been seriously considered yet. Therefore, it is necessary to study, discuss and review operational budgeting in organizations.Research QuestionsDespite the different emphasis and requirements of the country's development programs on the implementation of operational budgeting, the following questions are raised:What is the operational budgeting mechanism? What factors, including contextual, structural, human and other factors, are effective on the implementation of operational budgeting? What kind of budgeting model do Iran's executive bodies use? What are the important and influential factors related to operational budgeting? What are the obstacles and problems of operational budgeting in Iran's executive bodies? How to solve the current operational budgeting obstacles and problems?Research hypothesesBased on the theoretical foundations of operational budgeting as well as balanced evaluation and research history, the following hypotheses are presented:The main hypothesis: Operational budgeting variables are effective on the performance of Iran's executive bodies (using the balanced evaluation technique). Sub-hypotheses1) Structural factors in the establishment of operational budgeting are effective on the performance of Iran's executive bodies (using the balanced evaluation technique).2) Background factors in the establishment of operational budgeting are effective on the performance of Iran's executive bodies (using the balanced evaluation technique).3) Human factors in the establishment of operational budgeting are effective on the performance of Iran's executive bodies (using the balanced evaluation technique).4) Other effective factors in the establishment of operational budgeting (including personality factors, acceptance and ability) are effective on the performance of Iran's executive bodies (using the balanced evaluation technique).Literature ReviewThe theoretical foundations of operational budgeting are based on agency theory (Arief, (2020)) and organizational performance improvement (Derfuss, (2016)). In operational budgeting, instead of being based on cost materials, budget information is based on activities, and the results of performance measurement are provided with performance reports. The design and implementation of operational budgeting in any organization is based on three important factors: “planning”, “costing” and “organizational performance evaluation”. Activity-based costing (ABC) is the heart of operational budgeting and the main pillar in budget calculations (Azer and Khadivar, 2013), because activity-based costing is much more suitable for planning and control than traditional methods and provides more accurate information in this field. makes (Namazi, 1998 and 1999).MethodologyThis research is among the few researches that uses the scientific method of construction and experimental proof and is carried out based on pre-determined hypotheses and research plans. (Namazi, 2003). The method of data collection is a questionnaire. The information obtained from the measurement of the variables for the purpose of research tests was used from structural equations and the information was analyzed using Smart PLS version 2 and SPSS version 25 software.ResultsThe value of the T statistic and its statistical significance for the first main hypothesis and all balanced evaluation factors at the 95% confidence level shows as follows:The main hypothesis test: The structures identified in operational budgeting have a positive and significant effect on the performance of executive bodies.The first sub-hypothesis: The structures identified in the operational budgeting structural factors have a positive and significant effect on the performance of executive bodies.The second sub-hypothesis: The strength of the model and the background factors of operational budgeting do not have a significant effect on the performance of executive bodies.The third sub-hypothesis: The structures identified in human factors of operational budgeting have a positive and significant effect on the performance of executive bodies.The fourth sub-hypothesis: The structures identified in other effective factors in operational budgeting have a positive and significant effect on the performance of executive.DiscussionThe purpose of this study was to expand the theoretical foundations and provide empirical evidence in the field of operational budgeting in Iran. This development was done by presenting a conceptual model, explaining the organization's strategy and presenting 5 balanced evaluation criteria and testing related hypotheses. The findings of the study confirmed the theoretical foundations of operational budgeting and balanced evaluation. The results of the main hypothesis test of the research showed that the structures identified in operational budgeting have a positive and significant effect on the performance of executive bodies.ConclusionThe findings of the first, third and fourth sub-hypothesis showed that the structures identified in the structural factors, human factors and other operating budgeting factors of operational budgeting, have a positive and significant effect on the performance of executive bodies.The results of the second sub-hypothesis test showed that the variable of operational budgeting background factors does not have a statistically significant effect on the performance of executive bodies. The reason for this can be related to the governmental nature of executive bodies, non-compliance with the requirement to establish operational budgeting and cultural factors such as the resistance of employees and managers to new changes in the body.
Accounting tools
Javad Shekakhah; Iraj Asghari
Abstract
This article deals with modeling the long-term performance of IPOs in the Tehran Stock Exchange and OTC. Due to the difficulty of determining the definition of the long-term period, modeling was initially conducted for 12 periods. These periods ranged from 3 to 36 months. The purpose of this modeling ...
Read More
This article deals with modeling the long-term performance of IPOs in the Tehran Stock Exchange and OTC. Due to the difficulty of determining the definition of the long-term period, modeling was initially conducted for 12 periods. These periods ranged from 3 to 36 months. The purpose of this modeling was to analyze and compare the results and identify the most suitable periods for explaining the long-term performance of IPOs. Modeling has been conducted at the portfolio level using a Stepwise approach. For this purpose, the monthly time series was formed, and data from 236 IPOs in the Tehran Stock Exchange and OTC markets from 2009 to 2022 have been analyzed. The results showed that the return of the portfolios formed from initial offerings could be explained at a satisfactory level. While the primary factor in explaining the long-term performance of IPOs is market return, the profitability, and its distribution also play a significant role. Finally, the most suitable periods for use as the definition of the long-term period are 12, 21, and 27 months.IntroductionThe long-term performance of Initial Public Offerings (IPOs) has always been disputed by researchers. The inherent challenges of conducting long-term research and the complexities associated with Initial Public Offerings have led researchers to use different methods resulting in inconsistent findings.A prevalent approach in studying long-term IPOs is the use of “factor models” to identify the factors influencing IPO portfolio performance. However, the literature has presented and utilized several factor models. Examples of these models include Fama and French (1993), Carhart (2004), Fama and French (2015), and Ho et al. (2015). Despite some similarities, each of these models employs different factors and variables to explain IPO performance. In recent years, many researchers have criticized the use of these common models in their respective countries, citing reasons such as ineffectiveness of these models. These researchers argue that neglecting the socio-economic context of societies can lead to misinterpretation of return and yield inappropriate results for decision-makers. Consequently, each society should develop and employ its own models. Considering these issues, this research aims to provide models that explain the long-term performance of Iranian IPOs. Specifically, by testing various factors and variables, this study identifies the most effective models for explaining the long-term performance of IPOs in Iran.MethodologyIn this research, a stepwise approach was employed. Monthly data of 236 IPOs between 2009 and 2022 were utilized to construct relevant time series, and the returns of the IPO portfolios were analyzed with respect to potential factors that explain the return. To determine the initial set of variables, a systematic review approach was adopted. Due to the high correlation and multiple proxies for the liquidity factor, the liquidity variables were first reduced to three factors using principal component analysis. In total, 19 different factors and variables were included in the analysis.Given the lack of consensus among researchers regarding the definition of the long-term period, the modeling process in this research considered 12 different periods ranging from 3 to 36 months with a three-month increment. The selection of appropriate models was based on the criteria of accuracy and quality forecast, specifically Theil’s (1975) criterion. Three models that nest met these criteria were chosen, and the corresponding portfolio periods were identified as the defining terms for the long-term period. The validation of the selected models was performed by comparing their adjusted R2 values with those of common models found in the literature. Additionally, out-of-sample testing was conducted using 10% of the data to assess the model’s performance.Results and DiscussionThe research findings indicate that the models developed in this study exhibit a strong explanatory power, accounting for approximately 80% of the variations in the returns of IPO portfolios. Among the different portfolio periods considered, the models constructed using 12, 21, and 27-month portfolios demonstrated superior accuracy and forecast quality according to Theil’s (1975) criteria. As a result, these specific periods were identified as the most suitable definitions for the long-term period in this context. The significant variables identified in the models include market return, profitability, size, and dividend. Although the models generally incorporate a set of relatively common variables, the specific model associated with each defined period can be employed to achieve better results, taking into account the specific characteristics of the long-term period under consideration. Furthermore, it is worth noting that the intercept of the designed models, as well as the intercepts of the common models found in the literature, were found to lack statistical significance.ConclusionBased on the analysis conducted in the research, it can be concluded that utilizing native models specifically designed for IPOs provides a suitable explanation for their long-term performance. The primary factor in explaining the long-term performance of IPOs is found to be the market return. This suggests that the performance of initial offerings is primarily influenced by the overall market conditions, while other variables, such as profitability help modulate this effect. Additionally, the non-significance intercept in the models indicates that there is no evidence of long-term under or over-performance of IPOs in Tehran's financial markets. The superiority of the designed models compared to other common models is evident primarily in the 12-month period. While the performance of the models in other periods depends on the specific model employed.
Accounting and various aspects of finance
Saman Mohammadi; Zahra Oryaie; Ali Naderi
Abstract
Considering the impact of CEO Power on a bank’s performance, CEOs can play a role in social responsibility and earnings management. Given that earnings management in banks can have various effects on other industries and the overall economy, banks tend to practice earnings management more frequently ...
Read More
Considering the impact of CEO Power on a bank’s performance, CEOs can play a role in social responsibility and earnings management. Given that earnings management in banks can have various effects on other industries and the overall economy, banks tend to practice earnings management more frequently than non-financial organizations. Furthermore, due to a lack of transparency and information asymmetry, banks are required to be more accountable to society than other industries. Therefore, this research aims to investigate the impact of CEO Power on the relationship between social responsibility and earnings management in banks. The research sample comprises 16 banks listed on the Tehran Stock Exchange Market and Iran OTC between 2016 and 2021. These banks were selected to test the research hypothesis. The findings of the study suggest that social responsibility has a significant negative impact on earnings management in banks. This implies that an increase in social responsibility may lead to a decrease in information asymmetry and lack of transparency, resulting in a decrease in earnings management. Furthermore, the findings of the study indicate that CEO power does not play a significant role in moderating the relationship between social responsibility and earnings management in banks.IntroductionIndeed, engaging banks in social responsibility practices is expected to be beneficial for their stakeholders. In this context, stakeholders are often attracted to banks with a good reputation for social responsibility. Therefore, executives may engage in social responsibility activities to gain support from stakeholders, defend themselves against stakeholder activism, manage their business reputation, or protect their own careers. However, executives may also engage in social responsibility activities to manipulate earnings management and hide their self-interest motivations, which leads to agency problems. These agency problems arise when executives take opportunistic actions such as earnings management to maximize their profits, increasing the bank's agency costs. Given the influence of powerful CEOs on a bank’s performance, powerful CEOs play a role in social responsibility and earnings manipulation. Therefore, CEO power is one of the most important determinants affecting managers’ decisions.the current research has several important aspects. First, it extends the literature on the effect of commitment to social responsibility activities on firm earnings management, with a specific focus on the banking sector. Second, the research fills a gap in the literature regarding the role of social responsibility in financial reporting. Previous studies have not provided a clear consensus on whether social responsibility commitment has a positive or negative impact on financial reporting quality. Given the diversity of findings reported by previous studies, more research is needed to focus on understanding how social responsibility commitment can affect financial reporting quality, as proxied by earnings management practices.Does social responsibility affect banks' earnings management? Does CEO power have a significant effect on the relationship between social responsibility and earnings management of banks and strengthen this relationship?Literature Review2.1. Corporate social responsibility and earnings managementTo understand the link between corporate social responsibility (SR) and earnings management (EM), previous studies have proposed two perspectives: the ethical perspective and the managerial opportunism perspective. The ethical perspective assumes that EM is negatively associated with SR, while the managerial opportunism perspective argues that EM and SR are positively related. This leads us to our first hypothesis:H1. There is a significant relationship between SR and EM.2.2. Corporate social responsibility, earnings management and CEO powerGiven the influence of powerful CEOs on bank’s performance, powerful CEOs play a significant role in both SR input and earnings manipulation. Therefore, CEO power is considered one of the crucial determinants affecting managerial decisions. Hence, CEO power may have a moderating effect on the relationship between SR and EM. Accordingly, we propose the following hypothesis:H2. Powerful CEOs moderate the SR–EM relationship. MethodologyThe statistical population of this research consists of banks enlisted in the Tehran Stock Exchange Market and Iran OTC. The data from 16 banks for the period between 2016 to 2021 have been analyzed to test the research hypotheses. The statistical method employed in this study is the regression model of mixed data using panel data approach with a random effects estimation.ResultsThe obtained results suggest that social responsibility has a negative and significant effect on bank’s earnings management. In other words, as social responsibility increases, earnings management in banks is expected to decrease. Furthermore, the results show that the significant relationship between social responsibility and earnings management is not maintained when the adjusting variable of the CEO's power is included. In other words, the CEO's power does not have a significant effect on the relationship between social responsibility and earnings management.Discussion and ConclusionWith an increase in activities related to social responsibility, banks experience a decrease in earnings management. This observation aligns with the ethical perspective and the signaling theory, which suggest that social responsibility can serve as a tool to reduce earnings management. Banks with higher levels of social responsibility not only exhibit greater transparency regarding their social responsibility initiatives and stronger engagement with stakeholders, but they also tend to engage in less earnings management. Additionally, the study found that CEO power does not moderate the relationship between social responsibility and bank earnings management. This finding contradicts the theoretical foundations and the research background, which propose that CEOs may use social responsibility to gain stakeholder support, manage their reputation, and defend against stakeholder activism. Therefore, it is evident that relying solely on CEO power and characteristics may not lead to accurate decision-making in this domain. Shareholders and other financial decision-makers should consider factors beyond CEO power when attempting to moderate the relationship between social responsibility and earnings management.
Accounting and various aspects of finance
Gharibe Esmailikia; Raha Mohtasham
Abstract
In recent decades, there has been increasing pressure on governments to improve their performance, and in this regard, the importance of achieving sustainable performance has doubled. The effectiveness of the accounting information system in public sector institutions plays an important role in achieving ...
Read More
In recent decades, there has been increasing pressure on governments to improve their performance, and in this regard, the importance of achieving sustainable performance has doubled. The effectiveness of the accounting information system in public sector institutions plays an important role in achieving sustainable performance. However, the effectiveness of accounting information systems cannot achieve sustainable performance alone due to rapid changes in the world economy. Based on this, there is a growing demand to create a framework of evaluation that is suitable with the characteristics of the public sector organization for directing, managing and evaluating performance towards achieving sustainable performance. Public sector scorecard for measuring performance, is a strategic, result-oriented and multi-dimensional model. This study was conducted with the aim of investigating the relationship between the adoption of the public sector scorecard, the effectiveness of the accounting information system and sustainable performance in the public sector. The statistical population of the research was the financial employees of the governmental offices of Bushehr city, which was determined using Cochran's formula as a sample of 168 people, 175 questionnaires were distributed in 15 governmental offices, and finally 124 completed questionnaires were received and analyzed using structural equations. Data collection was done using Huy and Phuc (2020) questionnaire and data analysis was done using Smart PLS software. The findings showed that the adoption of the Public sector scorecard has a positive and significant effect on the effectiveness of the accounting information system, i.e. data input system, data processing system, data storage system and financial statement system. In addition, the effectiveness of the four components of the information system has a positive and significant effect on sustainable performance.IntroductionThe financial perspective provides a clear picture of the long-term goals of for-profit companies, however, in public sector organizations, this perspective acts as a constraint, not a goal (Kaplan, 1999). The public sector scorecard model is one of the best models used to measure and manage performance in the public sector (Shorvarzi etal, 2011). Accounting information system is considered as a lever to support the effectiveness and efficiency of organizational operations as well as management operations (Huy&phuc, 2020).Due to rapid changes in the global economy, the effectiveness of the accounting information system alone cannot lead to sustainable performance. Based on this, there is a growing demand for an evaluation framework that seems to be appropriate to the characteristics of public sector institutions in order to position, manage and evaluate the functions of the accounting information system in order to achieve sustainable performance. Based on this, adoption the Public sector scorecard is considered a suitable solution for this matter.Research Question(s)The main questions in this research are as follows:Does public sector scorecard adoption has an effect on the effectiveness of accounting information systems (based on its components)?Does the effectiveness of accounting information systems (based on its components) have an effect on sustainable performance in the public sector?Literature ReviewThe limitations of financial resources have caused public sector organizations to continuously review their activities, manage costs, evaluate performance and adopt mechanisms for continuous improvement (Shorvarzi etal, 2011). With the aim of integrating the service improvement and performance management framework used in the public sector, the public sector scorecard was created by Moullin (2017). Balanced scorecard is more than a simple performance evaluation system and can be an important strategic management accounting tool to simplify and transform the organization's mission and strategy (Rashid, 2020). With the aim of improving and promoting accounting performance in order to create useful information for decision-making, accounting information system is a coordinated combination of data input system, data processing system, data storage system and financial statement system. The effectiveness of the accounting information system can only be achieved when each of the mentioned systems can function effectively (Huy&phuc, 2020). The effect of public sector scorecard adoption on the effectiveness of the four components of the accounting information system was considered in four hypotheses. In order to achieve financial and non-financial performance, the accounting information system creates value added for users in terms of providing financial information for planning, control and decision making. Accounting information systems of organizations can improve non-financial performance in the long term and contribute to the sustainable development of the organization. In this regard, the impact of the effectiveness of the accounting information system on sustainable performance was formulated in four hypothesesMethodologyThe statistical population of the research was the financial employees of the governmental offices of Bushehr city, which was determined using Cochran's formula as a sample of 168 people, 175 questionnaires were distributed in 15 governmental offices, and finally 124 completed questionnaires were received and analyzed using structural equations. Data collection was done using Huy and Phuc (2020) questionnaire and data analysis was done using Smart PLS software.ResultsThe results of the eight research hypotheses are presented in Table 1.DiscussionThe findings showed that the adoption of the Public sector scorecard has a positive and significant effect on the effectiveness of the accounting information system, i.e. data input system, data processing system, data storage system and financial statement system. In addition, the effectiveness of the four components of the information system has a positive and significant effect on sustainable performance.ConclusionAccounting information systems play an important role in the activities of organizations, so the special proposal of the research is the need to pay serious attention to the various components of the accounting information system and focus on improving Its effectiveness. Since accounting information systems must measure performance in all aspects, not just the financial aspect, one of the factors affecting this issue is the use of the Public sector scorecard, which can improve the effectiveness of the accounting information system.Sustainable performance requires increasing the efficiency and effectiveness of organizations by taking into account all sustainability factors, so it is suggested to achieve performance sustainability in the public sector in different ways, including paying attention to information prerequisites by providing hard infrastructures. Hardware and software are important, therefore, putting in the agenda to improve the effectiveness of the accounting information system of the public sector through integrated information management can lead to improved performance and in the same direction sustainable performance.
Accounting and various aspects of finance
Hassan Badri Gamchi; Mohammad Hassani; Ahmad Yaghoobnezhad; Ehsan Rahmaninia
Abstract
This paper analyzed the consequences of financial reporting convergence towards integrated reporting in Iran's capital market focusing on agency cost and cost of equity capital. In order to measure the financial reporting convergence towards integrated reporting, a checklist has been used which designed ...
Read More
This paper analyzed the consequences of financial reporting convergence towards integrated reporting in Iran's capital market focusing on agency cost and cost of equity capital. In order to measure the financial reporting convergence towards integrated reporting, a checklist has been used which designed based on the international integrated reporting framework. The agency cost measured using the efficiency criterion based on the ratio of operational expenses to operational revenues. The cost of equity capital estimated based on the expected rate of return using the capital assets pricing model. The research population includes 144 firms listed in the Tehran Securities & Exchange over March 2016 till March 2021. Multivariable regression models were used to test research hypotheses. The findings showed that increase in convergence level of firms’ financial reporting with integrated reporting framework has reduced agency cost and cost of equity capital. These findings suggested that focusing on the benefits of integrated reporting through transparency and completeness of information disclosure has weakened agency conflicts and reduced agency costs. In addition, integrated reporting has reduced the cost of capital in financing decisions due to the adoption of sustainable business model from integrated thinking and the reduction of information asymmetry due to greater transparency for more informed forecasting.
Accounting and various aspects of finance
Mousa Bozorg Asl; Mohammad Ebrahimi noudeh; Javid Yarahmadi
Abstract
This research has been conducted with the aim of experimental test of the effect of political relations on the amount of investment of companies and its efficiency in the period of 2012 to 2019 of companies listed in the Tehran Stock Exchange. The method of data collection is archival and reference to ...
Read More
This research has been conducted with the aim of experimental test of the effect of political relations on the amount of investment of companies and its efficiency in the period of 2012 to 2019 of companies listed in the Tehran Stock Exchange. The method of data collection is archival and reference to databases and the method of data analysis is multivariate regression model using panel data model and fixed effects method. The results show that the relationship between political relations and the amount of investment as well as investment efficiency is positive and significant. These results indicate that companies with political connections have more investment than other companies and investment efficiency is higher in companies with political connections. According to the research findings, it can be seen that companies with political connections invest more and more efficiently than other companies due to their government benefits and privileges, as well as the ease of attracting financial resources.
Accounting and various aspects of finance
gholamreza karami; Ehsan Dolatzarei; Omid Faraji
Abstract
We intended to provide a comprehensive overview of behavioral accounting research. For this purpose, 371 articles published in two specialized journals of behavioral accounting - "Behavioral Research in Accounting" and "Advances in Accounting Behavioral Research"- have been analyzed. These journals are ...
Read More
We intended to provide a comprehensive overview of behavioral accounting research. For this purpose, 371 articles published in two specialized journals of behavioral accounting - "Behavioral Research in Accounting" and "Advances in Accounting Behavioral Research"- have been analyzed. These journals are indexed on the Scopus database and are among the specialist journals ranked by the Australian Business Deans Council. Co-word analysis and social network analysis have been used as the main method. Our analysis shows that emerging issues in recent years in the field of behavioral research have focused on "auditing", "corporate governance", "fraud" and "ethics". Findings show that the article "Online instrument delivery and participant recruitment services: Emerging opportunities for behavioral accounting research" with 167 citations is the most cited behavioral research article. Wicky Arnold is the top author in terms of number of articles with 12 articles. The United States is the top country in the world with 179 articles and 2,210 citations, and the two top universities in the world with 15 articles are the Virginia Commonwealth University and the University of Central Florida. This paper is the first study that conduct a bibliometric analysis of behavioral accounting research focusing on two specialized journals of behavioral accounting.
Accounting and various aspects of finance
mohammad namazi; Zahra Khorramdel Masouleh
Abstract
The purpose of this study is to investigate the effect of green product innovation and green process innovation on company's financial, environmental and economic performanc. The mediating role of environmental management accounting on the relationship between product and green process innovation and ...
Read More
The purpose of this study is to investigate the effect of green product innovation and green process innovation on company's financial, environmental and economic performanc. The mediating role of environmental management accounting on the relationship between product and green process innovation and company performance is also examined. The statistical sample includes 202 companies and the standard questionnaire was used to collect data and the structural equation modeling approach and the PLS method were used to test the hypotheses and the conceptual model of the research. Findings show that green product innovation has a significant impact on the financial, environmental and economic performance of the company, both directly and through environmental management accounting. Green product innovation affects environmental performance in the oil and gas and petrochemical, metal and food industries, as well as economic performance in the metal industry alone. In addition, green process innovation has a significant effect on the financial and economic performance of the company both directly and indirectly through environmental management accounting, but the impact of green process innovation on the environmental performance of the company is only through the accounting variable of environmental management accounting. Green process innovation affects financial performance in oil and gas and petrochemical, metallic and chemical industries and economic performance only in oil and gas and petrochemical industries. In the cellulose industry, neither green product innovation nor green process innovation affects any of the company's operations. Findings show the importance of green innovation and environmental management accounting in improving the company's performance.
Accounting and various aspects of finance
Mehdi Heidari; Alireza Aliakbarlou; Ebrahim Khakpour Heydaranlou
Abstract
Conservatism is an action that is used in conditions of uncertainty and limiting management optimistic behaviors to increase the reliability of financial statements. Financial distress and growth opportunities are among the factors that can improve the level of accounting conservatism. Meanwhile, managers' ...
Read More
Conservatism is an action that is used in conditions of uncertainty and limiting management optimistic behaviors to increase the reliability of financial statements. Financial distress and growth opportunities are among the factors that can improve the level of accounting conservatism. Meanwhile, managers' behavioral characteristics are expected to influence the relationship between financial distress and growth opportunities with accounting conservatism. Therefore, the aim of this study was to investigate the effect of management uncertainty on the relationship between financial distress, growth opportunities and accounting conservatism. The results of this study show, the variables of financial distress and growth opportunities have a positive and significant effect on conservatism. Management overconfidence has no significant effect on the relationship between financial distress and conservatism but it moderates the relationship between growth opportunities and conservatism and has a negative and significant effect on the relationship between them. In other words, that managers with unfavorable financial situation do not have a positive outlook on the future situation of the company and increase the level of conservatism. Managers of large and growing companies also tend to opt for more conservative accounting practices to minimize their political and social costs. On the other hand, overconfident managers are optimistic about the future state of the company and reduce the level of accounting conservatism.
Accounting and various aspects of finance
younes Badavar Nahandi; Gader Babaei
Abstract
Financial information comparability among peer firms in the same industry reflects the similarity and the relatedness of firms’ operating environments and financial reporting. The main aim of this study is surveying the effect of financial information comparability on financial reporting timeliness ...
Read More
Financial information comparability among peer firms in the same industry reflects the similarity and the relatedness of firms’ operating environments and financial reporting. The main aim of this study is surveying the effect of financial information comparability on financial reporting timeliness with emphasis on the moderating role of stock price information ambiguity. In order to achieve the goal of the research, a sample of 118 companies was selected during the period 2011 to 2020 and generalized least squares liner multiple regression method was used to test the research hypotheses. The results show that the financial reporting timeliness increases by enhancing financial information comparability and also study evidence show that this positive effect is more intense for firms with high stock price ambiguity. Efficient investment decisions are not possible without timely and comparable information. The comparability with improving the timeliness, increases the efficiency of the capital market. Also, it can be concluded from the research findings that in the conditions of stock price information ambiguity, the role of financial information comparability in the information transparency of the company environment and timely financial reporting is very important for users. Thus, the financial information comparability extensively increases the usefulness of accounting information for all users, especially in conditions of stock price information ambiguity.
Accounting and various aspects of finance
nahid mohamadi; mehdi bahar moghadam; omid pourheidari
Abstract
Predicting stock rates and securities pricing is one of the most important issues in financial markets. The information provided by managers in corporate financial statements helps investors make optimal decisions. The value of this information depends on their accuracy and correctness, and managers' ...
Read More
Predicting stock rates and securities pricing is one of the most important issues in financial markets. The information provided by managers in corporate financial statements helps investors make optimal decisions. The value of this information depends on their accuracy and correctness, and managers' biases distort the information correctly and lead to incorrect predictions and, of course, wrong decisions. Corporate governance is created by overseeing the opportunistic behaviors of managers and with the aim of reducing the conflict of interest between shareholders and managers.The aim of this study was to investigate the effect of corporate governance mechanisms on the relationship between managers' expectations and stock returns. Stock returns were calculated using the Fama and French three-factor model. It is an institutional agent and shareholder. The research hypotheses were tested using data from 178 companies whose data were available during the years 1390 to 1396 and using multivariate regression and combined data.Findings indicate that there is a significant relationship between managers 'expectations stickiness and stock returns and also only the mechanism of percentage of institutional shareholders has a significant effect on the relationship between managers' expectations stickiness and stock returns.
Accounting and various aspects of finance
farzad eivani; hadis abdi; farshid kheirollahi; mehri alimoradi
Abstract
The purpose of this study was to investigate the relationship between the audit expectation gap and investor confidence, also to investigate the role of the auditor’s improved level of communication on this relationship. To investigate this effect and a model with higher order constructs using ...
Read More
The purpose of this study was to investigate the relationship between the audit expectation gap and investor confidence, also to investigate the role of the auditor’s improved level of communication on this relationship. To investigate this effect and a model with higher order constructs using a partial least-squares structural equation model (PLS-SEM), has been used. Based on a questionnaire survey with auditors and institutional investors, as one of the main users of audited financial statements, this study explored investors’ perceptions of both unreasonable and sensible audit expectation gaps (auditing performance and auditing standard gap) and the impact of auditor’s improved level of communication on this assessment. Based on the findings and values related to the path coefficients, audit quality and ensuring audit education have had a significant and positive effect on investor confidence. Also, a significant and negative relationship has been seen between the performance gap and the unreasonable audit gap with the level of investor confidence. Another finding of this study was the significant and positive effect of auditor’s improved level of communication on the relationship between the audit performance gap and the unreasonable audit gap with the level of investor confidence. Also, the calculation and analysis of fitness indicators using Smart-PLS software has confirmed the conformity of the conceptual framework and the experimental background with the results.
Accounting and various aspects of finance
mohammad namazi; Arezoo Mosallanejad
Abstract
The purpose of this study is to design an accounting model for integrated water management through a combined exploratory method. In the qualitative part, using the Meta-Synthesis method, after searching in internal and external databases in the period 1980-2020, 147 studies were found, which after the ...
Read More
The purpose of this study is to design an accounting model for integrated water management through a combined exploratory method. In the qualitative part, using the Meta-Synthesis method, after searching in internal and external databases in the period 1980-2020, 147 studies were found, which after the meta- synthesis method, 33 particular studies which have a direct relationship with water accounting and management have been chosen. In the quantitative part, in order to assess the validity of the proposed model, using a questionnaire, the statistical population was active accountants in related industries in the field of water. Finally, using Cohen's sampling method, the opinions of 136 experts were received and analyzed using One Sample T-Test., In order to determine the factor loading of the indicators of each component, confirmatory factor analysis was used and the research hypotheses were tested. The results showed that the water management accounting model in Iran using Phenomenology method and balanced scorecard method includes 6 prospective: Finance, customer, internal processes, growth and learning, reputation and sustainability. The components of the model include 20 items: cost, efficiency, sales, expenses, water quality, water quantity, human capital, and so on and managers and in total 52 indicators constitute the water management accounting model.
Accounting and various aspects of finance
Mohammad Ali Aghaei; Mohammad Amri Asrami
Abstract
In this study, the impact of CEO’s overconfidence on the relationship between cash holding and excess returns is investigated in companies listed in Tehran Stock Exchange during the years 2011-2018. For CEO’s overconfidence, overinvestment in assets, and for excess returns, the difference ...
Read More
In this study, the impact of CEO’s overconfidence on the relationship between cash holding and excess returns is investigated in companies listed in Tehran Stock Exchange during the years 2011-2018. For CEO’s overconfidence, overinvestment in assets, and for excess returns, the difference between a firm’s stock return and the return of the firm’s benchmark portfolio over the same period is used. By systematic sampling, a sample of 157 companies is selected, and the models have run based on panel data with fixed effects. The results have shown that (1) cash holding has a positive and significant impact on excess returns, (2) CEO’s overconfidence has a negative and significant impact on excess returns, and lastly, (3) CEO’s overconfidence has a negative and significant impact on the relationship between cash holdings and the excess returns. With increasing CEO’s overconfidence, the excess returns will be reduced. Overconfident managers keep cash at a higher level that leads to overinvestment. It consequently decreases excess returns.
Accounting and various aspects of finance
hasan yari; rafik baghomian
Abstract
One of the most important tasks for managers is decision-making. Life goes on today while the shadowing of uncertainty over all affairs has completely changed the decision-making process for various reasons. Companies, during their economic life, also face various factors that are unpredictable, and ...
Read More
One of the most important tasks for managers is decision-making. Life goes on today while the shadowing of uncertainty over all affairs has completely changed the decision-making process for various reasons. Companies, during their economic life, also face various factors that are unpredictable, and they are corporate managers who make the necessary final decisions for the company. Managers, like everyone else in the community, have different individual characteristics, talents, desires, attitudes, and value systems that can influence company policies. The present study aims to investigate the effect of managerial ability on companies' risk-taking behavior. In this regard, we analyzed the financial statements of 165 companies listed in Tehran Stock Exchange (TSE) for the period of 1388-1397. We measured managerial ability using the model introduced by Demerging et al. (2012). Also, we measured the risk-taking behavior of companies using two variables: standard deviation of the Return on Assets (ROA), the ratio of capital expenditures to total assets, and financial leverage of the company. Hypothesis testing is carried out through a multiple regression model with panel data. The results indicate that managerial ability has a positive and significant relationship with the ROA and the ratio of capital expenditures to total assets.
Accounting and various aspects of finance
Rafik Baghoomian; Hossein Rajabdorri; amirreza khanizolan
Abstract
The purpose of this study is to investigate the relationship between financial report readability and stock return synchronicity with the moderating role of institutional ownership and information asymmetry in companies listed in the Tehran Stock Exchange (TSE). This research is in terms of its purpose. ...
Read More
The purpose of this study is to investigate the relationship between financial report readability and stock return synchronicity with the moderating role of institutional ownership and information asymmetry in companies listed in the Tehran Stock Exchange (TSE). This research is in terms of its purpose. Its period is from 2015 to 2019, and the selected sample consists of 171 companies listed in TSE. To test the research hypotheses through panel data, the ordinary least squares regression method in Eviews software was used. The findings of the research hypothesis test show that there is a negative and significant relationship between financial report readability and the stock return synchronicity. Also, institutional ownership as a moderating variable negatively correlates the illusion of financial report readability and the synchronization of stock prices. Additionally, the moderating effect of the information asymmetric variables on the relationship between the financial report readability and the price synchronization is positive and significant. According to the findings, on the one hand, it is necessary to examine the implications of financial report readability. On the other hand, in order to improve the market, more attention needs to be paid to the issues affecting the stock return synchronicity.
Accounting and various aspects of finance
Zahra Yousefzadeh; Gholamreza Mansourfar; Farzad Ghayour
Abstract
Today, with rapid and sustained changes in business markets, a growing number of companies have turned diversification into new product segments or global markets by shifting their business to increase the importance of long-term financial viability and sustainability. Moreover, increasing the variety ...
Read More
Today, with rapid and sustained changes in business markets, a growing number of companies have turned diversification into new product segments or global markets by shifting their business to increase the importance of long-term financial viability and sustainability. Moreover, increasing the variety of products, covering the uncertain demand of customers, managing inventories and timely action have been important issues in manufacturing companies. Accordingly, the main purpose of this study is to investigate the impact of diversification strategy on inventory performance, which is one of the topics of operations management by considering the classification of the diversity into related, unrelated and international. The statistical population studied includes all companies listed in the Tehran Stock Exchange during the years 2009-2018. Sampling has been done by screening method, and the number of companies in the final sample has reached 120 companies. The hypotheses have been tested by the estimated generalized least squares method. The results show that related and international diversification have positive and significant effects on inventory performance. The findings also indicate that unrelated diversification has an adverse effect on inventory performance, but this relationship is not statistically significant. Based on the acquired results, an increase in related and international variety of products, relying on higher safety stock, has led to an increase in sales. In addition, the insignificancy in the effect of unrelated diversification on inventory performance can be attributed to production costs and marketing programs of manufactured products.
Accounting and various aspects of finance
Roya Soltani; Ali ebrahimnejad
Abstract
In this study, we examine the market reaction to the asset revaluation of listed companies. We first estimate the market reaction to the asset revaluation announcement, then explore potential explanations for the market reaction. Asset revaluation can improve firm's access to financing by improving financial ...
Read More
In this study, we examine the market reaction to the asset revaluation of listed companies. We first estimate the market reaction to the asset revaluation announcement, then explore potential explanations for the market reaction. Asset revaluation can improve firm's access to financing by improving financial ratios. On the other hand, the increase in the firm's capital from the revaluation is accompanied by stock split which results in a decrease in the theoretical share price. This apparent drop in theoretical share prices could induce shareholders' interest as a result of money illusion. To assess these alternative explanations, we run a cross-sectional regression of the cumulative abnormal return on proxies of each factor. To further explore the driver of market reaction, we examine whether firms that have re-evaluated their assets could improve their access to financing or reduce their financing costs. For this purpose, we study a panel of listed companies between 2011 and 2019 for their access to finance, financing cost, investment, and financial leverage, controlling for the firm and year fixed effects. Our results are more consistent with the nominal price reductions causing the market reaction. We do not find evidence of asset revaluations leading to the firm's better access to financing.
Accounting and various aspects of finance
Erfan Mohammadi; hamideh Esnaashari
Abstract
The risk of stock price crash is one of the topics of interest in capital market research. Since the main mission of capital market regulators is to protect the rights of investors, it has always been important to consider the factors that affect crash risk. The quality of financial reporting and earnings ...
Read More
The risk of stock price crash is one of the topics of interest in capital market research. Since the main mission of capital market regulators is to protect the rights of investors, it has always been important to consider the factors that affect crash risk. The quality of financial reporting and earnings management patterns are the most important tools available to regulators that can help them manage crash risk aversion, which is why this study addressed them. Earning management patterns include earnings management through accruals and real earnings management. The statistical population of this study is the companies listed on the Tehran Stock Exchange and the research sample was selected in terms of some features (including 167 companies) for the period 2012 to 2018. The research method of the present study is descriptive- correlation and the research hypotheses are tested using the generalized least squares method. The results show that the accrued earnings management model is related to stock crash risk and the use of earnings management through accruals increases the risk of stock price falls. While this is not the case with earnings management through real activities, the application of this earnings management model has nothing to do with the negative changes in stock returns. In addition, audit quality weakens the relationship between accrued earnings management pattern and stock crash risk. While the relationship between real earnings management pattern and stock crash risk is not affected by audit quality
Accounting and various aspects of finance
Ramin Hosseini; Alireza Matoufi; Mansor Kargaz; Ali Khozan
Abstract
One of the problems that many organizations have is changing the behavior of the employees of that organization. Leaving the state of behavioral balance can be considered as human behavioral entropy that can no longer comment on his behavior. Understanding the causes of these behaviors can prevent many ...
Read More
One of the problems that many organizations have is changing the behavior of the employees of that organization. Leaving the state of behavioral balance can be considered as human behavioral entropy that can no longer comment on his behavior. Understanding the causes of these behaviors can prevent many problems in organizations. The purpose of this study is to develop a model of auditors' behavioral entropy.. The present study was conducted in the framework of a qualitative approach and using the data research method of the foundation in 2019. Data collection tools were semi-structured interviews and in order to collect information, using purposive sampling method with 29 auditors of the auditing organization and managers of the auditing organization, 15 of whom were members of the community. And 14 of them were other auditors, familiar with the concept of behavioral entropy. In Tehran, interviews were conducted using the snowball method. . Data analysis was performed in three stages of open coding, axial coding and selective coding. Based on that, a qualitative research model was designed. In this model, the most important causal factors included the economic characteristics of the country, the auditor's financial condition, individual and family characteristics, educational and experimental characteristics. Based on that, a qualitative research model was designed. In this model, the most important causal factors, including the economic characteristics of the country, are the audited financial conditions. The underlying context also includes the control system, commitment to professional use, and professional budgeting