Nezamoddin Rahimian; Mohammad Taghi Taghavifard; Sepideh Javadi Sofiani
Abstract
The main role of financial reporting is the effective transfer of financial information to people outside of the organization in a valid way while being ontime. This way, managers have the opportunity to judge the financial reports. This study aimed to investigate the impact of audit quality incentives ...
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The main role of financial reporting is the effective transfer of financial information to people outside of the organization in a valid way while being ontime. This way, managers have the opportunity to judge the financial reports. This study aimed to investigate the impact of audit quality incentives associated with the change of accruals in companies with high equity valuations. For this purpose, the performance of 184 companies, as a sample, during the time period of 2009-2013 was studied. In this study, the ratio of market price to earnings before extraordinary items and discontinued operations as an excess stock value measure has been used. Also, to analyze the impact of excess stock valuation on real earnings management, multivariate regression analysis considering panel data was used. The results of first hypothesis testing show that there is no significant relation between the size of audit firm and discretionary accruals. However,the results of second hypothesis testing indicate that there is a significant relationship between auditor’s tenure and optional accrual items in companies with high equity valuation. Also, the management motivation to change accruals in companies with high equity valuation is reduced.
Yahya Hassas Yeganeh; Mohamad Hossein Madanie
Volume 2, Issue 6 , July 2004, , Pages 113-127
Abstract
Credit institutes and banks are one of the most important users of financial statements and auditing reports. In banking system, two main operations are fulfilled: collection of fund and lending.
Decisions making for granting credit in banking system are based specified procedures and ...
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Credit institutes and banks are one of the most important users of financial statements and auditing reports. In banking system, two main operations are fulfilled: collection of fund and lending.
Decisions making for granting credit in banking system are based specified procedures and models in which obtaining financial and auditing report are very important . In Iran , the decisions are not made in an entirely independent and logical spaces on the basis of common credit model as well as bank interests and competition among credit grantors in free market of credits ; because , governmental policies and independent to decide on granting special credits.
This article examine following questions;
What are the effects of auditing reports in their common form on the decisions made by special group of users or the creditors?
The findings of this survey have been collected from 76 questionnaires from decision - makers and authorities of lending in banking system.
Statistical analysis does not indicate a strong and effective relation between auditing report and making decision in credits. But, in case of the stability of other conditions for auditing report will use in decision-making relatively. On the other hand, the behaviors of credit grantors comply with a relative model and predetermined pattern.
Also the type of the personality of credit grantee and type of the loan will affect decisions. While, different credit grantors have an identical attitude regarding the role of independent auditing in decision making from the viewpoint of organizational site, education or work experience.
For effective utilization of independent auditing report, some approaches have been proposed regarding a model of credit granting and in these approaches effective information regarding the information which shall be obtained from the applicants of loans as well as making decision in relation to granting the loan or not and determination of main factors of credits such as the rate of interest, have been collected.
fateme rezazadeh karsalarei; mostafa sargolzaee
Abstract
In today's world, the banking industry plays a decisive role in the development and economic growth of countries due to its diverse financial and credit services, and can be considered as a driving force, an accelerator, and a balanced economy. Since the efficiency of each system is evaluated according ...
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In today's world, the banking industry plays a decisive role in the development and economic growth of countries due to its diverse financial and credit services, and can be considered as a driving force, an accelerator, and a balanced economy. Since the efficiency of each system is evaluated according to the efficiency of that system, the efficiency of the banking system is also measured through its return on equity holders and depositors. The more profitable the banks are, the more trustworthy the customers show than the banks, and they still keep their savings with the banks. The purpose of this paper is to examine the relation between the performance and the nature of banks' liquidity. To achieve this goal, data from 18 banks during 2009-2017 and using general momentary method (GMM) have been used. In this study, studied to calculate the liquidity index in the banking system, and emphasizing the structure of the balance sheet of the country's banking network. The results show the bank’s performance has a positive and significant effect with the creation of liquidity. Other results also show that the rate of economic growth, the ratio of capital to assets and the inflation rate have positive effects and Z-score has a negative effect on liquidity creation of banks.
Accounting report
Mojtaba Golmohammadi shuraki; Abolfazl Zare Mehrjardi
Abstract
Audit fee, which is one of the signs of an audit effort, is an important factor in the acceptance or rejection an audit by owners and auditors. The characteristics of the client and especially the characteristics of financial reporting are important factors that can affect the timing of the audit and ...
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Audit fee, which is one of the signs of an audit effort, is an important factor in the acceptance or rejection an audit by owners and auditors. The characteristics of the client and especially the characteristics of financial reporting are important factors that can affect the timing of the audit and subsequently the audit fee. The main purpose of this research is to investigating the relationship between accounting comparability (as qualitative financial reporting characteristic) and audit fees. For this purpose, a sample of 70 companies listed in Tehran Stock Exchange between 2015 and 2019 has been studied. Research hypotheses have been tested using regression analysis based on cross-section data. Evidence research shows that there is a negative and significant relationship between the accounting comparability and audit fees. This conclusion can be interpreted in terms of inherent risk of audit and information efficiency, because accounting comparability reduces audit risk and evidence acquisition costs. Also, the results show that there is a significant negative relationship between comparability and audit delay. In addition, the results suggest that there is not a significant negative relationship between audit fees and board independent, ownership concentration and institution ownership as corporate governance mechanisms.
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 ...
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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.
S.H. Sajadi; R. Takor; A. Mahmoudi
Volume 8, Issue 29 , April 2010, , Pages 115-137
Abstract
Earnings quality is discussed by multiple dimensions. The purpose of this paper is to study the relationship between institutional investors and earnings quality using the Financial Accounting Standards Board's conceptual framework (including, Predictive value or feedback value, Neutrality, Timeliness, ...
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Earnings quality is discussed by multiple dimensions. The purpose of this paper is to study the relationship between institutional investors and earnings quality using the Financial Accounting Standards Board's conceptual framework (including, Predictive value or feedback value, Neutrality, Timeliness, Representational faithfulness) as a basis. A sample of 80 listed companies in Tehran Stock Exchange (TSE) for the period of 1384-1387 has been selected. Hypotheses have been tested using ordinary least square (OLS) with pooled data. The results show that, institutional investors have a positive relationship and significantly with predictive value or feedback value and representational faithfulness. Also, institutional investors have a positive relationship and significantly with timeliness. Finally, institutional investors have not relationship with the absolute value of abnormal accruals (ABNAC).
alireza mehrazin
Accounting report
Navid Reza Namazi; Pedram Azizi
Abstract
The purpose of this study is to investigate the moderating effect of auditing quality on the relationship between financial reporting quality and initial public offerings (IPOs) underpricing of stocks. The population of this study is the companies listed on the Tehran Stock Exchange (TSE) and OTC of ...
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The purpose of this study is to investigate the moderating effect of auditing quality on the relationship between financial reporting quality and initial public offerings (IPOs) underpricing of stocks. The population of this study is the companies listed on the Tehran Stock Exchange (TSE) and OTC of Iran. The statistical sample consists of 230 companies in the period of 18 years, from 2001 to 2019. The results showed that on average, 25% of the initial public offering underpricing of stocks occurs in the Iranian capital market. In addition, the findings of the regression analysis using the E views software indicated that the financial reporting quality has a negative and significant effect on the initial public offerings underpricing of stocks. In other words, the high financial reporting quality prevents the initial public offering underpricing. It was also found that audit quality (in terms of the type of auditor's opinions) enhances the relationship between financial reporting quality and the initial public offerings underpricing of stocks. However, the size of the audit firm and the auditor's tenure do not moderate the relationship.
seyed Abbas Hashemi; Saeed Samadi; Reyhaneh Hadian
Volume 11, Issue 44 , March 2015, , Pages 117-143
Abstract
In current business world, companies require suitable strategies forbetter use of their resources and wealth to solve their economicproblems. For this goal, one way is development of investment. Inaddition to development of investment, the efficiency of investment isso important. Hence, this study examines ...
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In current business world, companies require suitable strategies forbetter use of their resources and wealth to solve their economicproblems. For this goal, one way is development of investment. Inaddition to development of investment, the efficiency of investment isso important. Hence, this study examines the effect of financialreporting quality and debt maturity on investment efficiency. for dataanalysis and Hypothesis testing the multiple regressions models wasused .This research has been done in 104 listed companies in TehranStock Exchange based on data contained in financial reports between2007 – 2012. The results show that upper financial reporting qualityand lower debt maturity can improve investment efficiency .resultsalso show firms with higher (lower) use of short-term debt, exhibitlower (higher) financial reporting quality effect on investmentefficiency. In other world, financial reporting quality and debtmaturity are mechanisms with some degree of substitution inenhancing investment efficiency.
E. Vahidi Elysseai; A. Rahdaryan
Volume 6, Issue 24 , January 2009, , Pages 117-146
Abstract
This research was done in the second half of 1387 in Iran to appraisal influencing factors on auditor's judgment and determining the materiality degree on misstatement detection of financial statements. After theoretically study, quantitative and qualitative factors recognized and sort in 28 factors ...
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This research was done in the second half of 1387 in Iran to appraisal influencing factors on auditor's judgment and determining the materiality degree on misstatement detection of financial statements. After theoretically study, quantitative and qualitative factors recognized and sort in 28 factors at 2 equal groups and in 350, 300 questionnaires send for internal and external auditors that 131 external auditors and 59 internal auditors answered them.
Perception of Iranian internal and external auditors appraisal to efficiency each factors using statistical tests and specify that auditors perception's to quantitative and qualitative factors are the same, but they have not the same cognition.
Results of this research show that by not existing general difference in perception of auditors to efficiency factors, auditors sort them to different configuration. As external auditors appraisal 8 quantitative factors and 5 qualitative factors to the most effective factors and against internal auditors recognize 6 quantitative factors and only 1 qualitative factor to the most effective factors.
Also Results of this research show that external auditors think that qualitative factors are more effective and internal auditors think that quantitative factors are more effective.
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 ...
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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.
Iraj Noravesh; Mehdi Heidari
Volume 2, Issue 8 , January 2005, , Pages 121-151
Abstract
In order to examine information content of three performance measures of CVA, OP, OCF, we pose two questions as follows:
1. Does Cash Value Added (CVA) explain annual stock return variations better than Operating Profit (OP) and Operating Cash Flow (OCF)?
2. Does Cash Value Added (CVA) have information ...
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In order to examine information content of three performance measures of CVA, OP, OCF, we pose two questions as follows:
1. Does Cash Value Added (CVA) explain annual stock return variations better than Operating Profit (OP) and Operating Cash Flow (OCF)?
2. Does Cash Value Added (CVA) have information content more incrementally than Operating Profit (OP) and Operating Cash Flow (OCF)?
The time period and number of samples respectively is 1378-1382, 110 company in four industry: Nutrition, Chemical, Automobile and nonmetal minerals. Current research hypothesis tested as follows: the hypothesis tested through regressed pooled time series, cross-sectionally for each industry and the selected firms’ totals, that is, computing correlation coefficient and determinant coefficient.
Current research results show:
By the except ion of Chemical and Automobile industries, the existence of significant relation between cash value added and annual stock return in other industries and in level of the selected firms totals verified.
By the exception of Chemical industry, the relative information content
of cash value added (CVA) in other industries, and in level of the selected firms totals much than operating profit(OP) and operating cash flow(OCF) i.
By the exception of Chemical industry, the information content of cash value added (CVA) in other industries, and in level of the selected firms totals relative to operating profit (OP) and operating cash flow(OCF) was incremental.
Shadi Jandaghyan; Shadi Jandaghyan
Abstract
Financial reports are tools that transfer accounting information to users,particularly investors. When the reporting quality is poor, investors rely on industry and market-level information. This action contributes to greater stock return movement with market and industry return, and Increases ...
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Financial reports are tools that transfer accounting information to users,particularly investors. When the reporting quality is poor, investors rely on industry and market-level information. This action contributes to greater stock return movement with market and industry return, and Increases stock return synchronicity. Factors such as free cash flow agency problem may cause distortion of information quality by managers as a result outsider investors are misled. The purpose of this study is to investigate the effects of free cash flow agency problem on stock return synchronicity and financial reporting quality. In order to test the hypotheses, data of 105 firms listed in Tehran Stock Exchange during the years 1388 to 1392 were used. Findings of research signify that companies with strong free cash flow agency problem have a greater stock return synchronicity. Results also indicate that free cash flow agency problem has a significant and negative impact on the financial reporting quality. Thus investors who invest in the stock exchange and their main attention is focused on free cash flow, must to consider free cash flow agency problem as a factor affecting decisions.
Rafik Baghoomian; Hossein Rajabdorri; Manochehr Khoramin
Abstract
The purpose of this study is to investigate th e relationship between the personality factors including ability to communicate and tolerance of ambiguity, and learning in accounting students in Iran. The study is an applied-type survey. A questionnaire and a sample of 13 2 student s of accounting at ...
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The purpose of this study is to investigate th e relationship between the personality factors including ability to communicate and tolerance of ambiguity, and learning in accounting students in Iran. The study is an applied-type survey. A questionnaire and a sample of 13 2 student s of accounting at different levels of education were conducted in 2017. To analyze the findings in the form of two main hypotheses and four sub-hypotheses, structural equation method was used by SmartPLS software. Findings of the research show that there is a positive and significant relationship between personality factor of communication ability and its four subscripts including oral communication, communication by interviewing, communicating through conversation and communicating by providing, and learning. The most relevant are communicating with the provider and the least amount is for oral communication. There is also a positive and significant relationship between personality factor of tolerance of ambiguity and learning.
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.
Mohsen Khoshtinat; Abdollah Khani
Volume 1, Issue 3 , October 2003, , Pages 127-153
Abstract
One of the most important characteristics of corporation is distinction between ownership and management. On this basis, manager exclusively available to access to apart of information and he/she is ...
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One of the most important characteristics of corporation is distinction between ownership and management. On this basis, manager exclusively available to access to apart of information and he/she is responsible to preparing and transferring financial information. Because of such authority and other characteristics such as characteristic of accounting , because of accruals (difference between cash basis income and accrual basis income) and incentives such as bonus incentive , income smoothing, desert of regulation, manager available and willing to manipulate information (income management), specially financial information, in direct of his/her benefit and in contrast with benefit of other groups. This object, in this research and in form of four hypotheses, in connection of management bonus, prediction of bonus and income, income smoothing and monitoring of regulation of pricing is tested. These hypotheses are analyzed by regression analyzing and Wilcoxon test. On basis of research result and considering of limit in available to financial information of some statistic popular corporations, managers are willing to manage the income in periods that corporation has loss or income, in order to increase the bonus; and in profitability periods, in order to smooth the income.
Ali Saghafi; Mohammad Arab Mazaryazdi; Rafik Baghomian
Volume 3, Issue 10 , July 2005, , Pages 127-156
Abstract
The fast moving pace of developments on the Information and Communication Technologies (ICT) and especially on the Internet, affects all aspects of society. In accounting, the Internet provides a new and revolutionary method of financial reporting. It is fast, cheap and increasingly accessible to shareholders ...
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The fast moving pace of developments on the Information and Communication Technologies (ICT) and especially on the Internet, affects all aspects of society. In accounting, the Internet provides a new and revolutionary method of financial reporting. It is fast, cheap and increasingly accessible to shareholders and other stakeholders of the firms.
Despite above mentioned evolution, there is a little attention toward such changes in Iran.
The organization of this paper is as follows. It first provides a brief literature review of Internet Financial Reporting (IFR) and describes some theoretical approaches on i t. Thereafter the paper reports current situation of IFR and then predicts immediate and future trends of it. The last section reviews the current situation of IFR i n Iran and finally makes suggestions to improve the situation.
M. H. Setayesh; M. Jamalian Pour
Volume 7, Issue 25 , April 2009, , Pages 127-146
Abstract
This article explores the changes and effects of capital structure on the production of products. For this purpose we test hypotheses with simple and logistic multi-regression analysis. This research use data related to 341 corporations that were listed in Tehran Stock Exchange from 1378 to 1387. ...
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This article explores the changes and effects of capital structure on the production of products. For this purpose we test hypotheses with simple and logistic multi-regression analysis. This research use data related to 341 corporations that were listed in Tehran Stock Exchange from 1378 to 1387. The findings of the research are follows:
A significant statistic relation was seen between the components of capital structure (The only exceptions were registered capital) and companies' capacity in getting access to the predicted products.
Between change in short-term liabilities, allowance for labors' work and retained earnings in capital structure and actualization of predicted products are observes a statistically significant relation. In addition, components of capital structure and changes in them can predict ability of manufacturing amount that predicted in first of fiscal year. Lastly the results show that with over use components of capital structure and changes in them one can predict through 95.9 percent increase or decrease in products manufacturing.
Mohammad Reza Nikbakht; Mohammad Reza Asgari; Hamidreza Ganji; Arash Tahriri
Volume 5, Issue 17 , April 2007, , Pages 129-150
Abstract
In this study the existence of abnormal return and its effective factors were examined. The results show that there is positive short term abnormal return during six month after the acceptance of sampled corporations in exchange. Among seven variable s; Size, Horizon, Coefficient of Variances, Stock ...
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In this study the existence of abnormal return and its effective factors were examined. The results show that there is positive short term abnormal return during six month after the acceptance of sampled corporations in exchange. Among seven variable s; Size, Horizon, Coefficient of Variances, Stock Market Return one month before the offering of stock , Audit Firm and Industry Type, only Size (reversely) and Stock Market Return (directly) had a relation with abnormal return; however, multi variable regression analyses demonstrated that al l of the variables can simultaneously justify just around 20% of abnormal return.
M. Dastgir; N. Izadinia
Volume 2, Issue 5 , April 2004, , Pages 131-155
Abstract
Valuation of securities by economic value added (EVA) model and Free cash flow (FCF ) model i s a current procedures in free economy societies. Using such models requires long and complex ...
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Valuation of securities by economic value added (EVA) model and Free cash flow (FCF ) model i s a current procedures in free economy societies. Using such models requires long and complex calculations, therefore, they seem to be difficult to implement in the first sight. One of the objectives of the present study is to see whether by using accrual accounting reports, in the present situation i n Iran, is i t possible to value business entities and their share values. To support the EVA and FCF models empirically, we need to study the relationship between the value creation measures (internal measures of operation evaluation ) and values the judgment of financial markets (external measures of operation evaluation ) .
This research is in the field of accounting and financial management and its hypotheses are and in connection with the relationship between value creation measures, i.e. EVA and FCF measures, financial market measures such as, market value (MV) and market value added (MVA).
The results of this study suggests that with some adjustments to accounts and financial reports we are able to value business entities and their shares in a given time period, and report the gap between share values, based on the EVA and the FCF models , and market values of those shares. The specific results from testing the hypotheses in this study dictate that i n most industries there is a meaningful relationship between internal measures of creating value market measures of business entities under study.
Accounting report
Masoumeh Shahsavari; Mohammad Reza Abbaszadeh; Hamze hesari
Abstract
In the present study, the relationship between the qualitative information of the auditor's report and the quality of accounting has been discussed. In particular, the relationship between the tone of the auditor's report and the audit fee (audit quality criterion based on the input of the audit process) ...
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In the present study, the relationship between the qualitative information of the auditor's report and the quality of accounting has been discussed. In particular, the relationship between the tone of the auditor's report and the audit fee (audit quality criterion based on the input of the audit process) has been examined with respect to the concepts of risk, client business risk, and litigation risk. To test the research hypotheses, 360-year-firms data of Iranian Stock Exchange were used during a period of 6-years, three years before and three years after the revision of Auditing Standard No. 700. Textual data were analyzed using Maxqda10 text analysis software and after quantification along with other quantitative data were analyzed using multivariate linear regression in Ives software and SPSS Eviews 9. The results indicate a weak inverse relationship between the optimistic tone and the audit fee variable. In addition, the findings showed that the acceptance of the requirements of Auditing Standard No. 700 does not make significant changes in the relationship between the tone of the auditor's report and the remuneration compared to the period before the review. In general, the results of the research indicate evidence of the predominance of the signaling effect (albeit poorly) in the sample.
Yahya Hassas Yeganeh; Gholamhassan Taghinataj Malakshah
Volume 4, Issue 14 , July 2006, , Pages 133-176
Abstract
The quality of accounting information (including the relevance and the reliability) has effect on capital market efficiency and optimizing decision process. The accounting and auditing education knowledge and profession usually are tried for optimizing the quality.
This study examined demand of the ...
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The quality of accounting information (including the relevance and the reliability) has effect on capital market efficiency and optimizing decision process. The accounting and auditing education knowledge and profession usually are tried for optimizing the quality.
This study examined demand of the users in security exchange market accountants (registered in Tehran Security Exchange Market); (2) Internal auditors (in accepted corporations); (3) Investment Technicians; (4) Accounting students (Ph.D. & MA) in examined group and (5) Accounting students (Ph.D. & MA) in control group.
Conclusion:
The result shows that all of examined groups confirm that:
1) Internal control Reporting is useful for all users of financial information;
2) The report enhances quality of the information;
3) The report should be mandated for accepted corporation in TEHRAN Security Exchange Market;
4) The report is required to auditing by independent auditor.
Seyed Kazem Ebrahimi; Ali Bahraminasab; Sedigheh Parvaneh
Abstract
The goal of this paper is to examine the association between product marketcompetition and corporate investment decisions on particularly, over investment and low investment. The managers have different incentives to keep cash in firms. Product market competition is another powerful mechanism ensuring ...
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The goal of this paper is to examine the association between product marketcompetition and corporate investment decisions on particularly, over investment and low investment. The managers have different incentives to keep cash in firms. Product market competition is another powerful mechanism ensuring that management does not waste resources. When competition exists, shareholders can observe performance in other firms and use this information as a benchmark to evaluate managers. The aim of this research is to investigate impact of product market competition and Interactive relationship between product market competition and free cash flow on over- investment and low- investment in free cash flow. The Herfindahl-Hirschman index was used as measures of competitiveness. The sample consisted of 110 companies listed in Tehran Stock Exchange from 10 different industries over the period 2010 to 2015. Research findings indicate that there is no significant positive relationship between Herfindahl- Hirschman with the low_ investment and over_ investment. The interactive effect of product market competition on a negative free cash flow has significant relationship with low investment.
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.
Accounting and various aspects of finance
HamidReza Ganji; Shahnaz Mashayekh; Zakiye Seddighi
Abstract
Investors' decision-making processes are influenced by a combination of rational behavior and emotions, particularly during special circumstances where emotional behaviors may overshadow rationality. This study aims to examine the influence of investor sentiments on their expectations of future earnings. ...
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Investors' decision-making processes are influenced by a combination of rational behavior and emotions, particularly during special circumstances where emotional behaviors may overshadow rationality. This study aims to examine the influence of investor sentiments on their expectations of future earnings. A sample of 163 companies listed on the Tehran Stock Exchange during the period from 2011 to 2020 was selected to achieve the research objective. Multiple linear regression was used to test the research hypotheses. The results indicate that investors' sentiments do not have a significant relationship with the stability of losses, suggesting that emotional behaviors do not lead to substantial changes in loss stability. Similarly, there is no significant relationship between investors' sentiments and the stability of earnings. Consequently, investors lack a proper understanding of future earnings and losses, which impacts their decision-making processes. Addressing this issue requires relevant officials to take measures to enhance investors' awareness of the overall market and the fundamentals of listed companies, thereby fostering a more informed investment environment. 1- IntroductionBehavioral finance theories underscore the pivotal role of investors' emotional behaviors in determining asset values, challenging the conventional notion that changes in security values are solely driven by fundamental factors (Kim & Ha, 2010). This study aims to investigate the influence of investors' emotions on their expectations of future earnings and to examine how emotions at the capital market level lead to misjudgments in stock valuations. To achieve these objectives, we explore the relationship between investors' emotions and their expectations of future earnings. Specifically, we anticipate that investors may perceive losses as more stable during periods of diminished sentiment and less stable during periods characterized by heightened sentiment. This difference is expected to be more pronounced for companies operating at a loss compared to profitable companies. Literature Review2-1. Investor sentimentThe emergence of behavioral financial sciences has sparked significant interest among researchers, leading to a plethora of studies investigating the emotional behaviors of investors. Noteworthy contributions in this domain include the works of Baker and Wurgler (2007), Cornell (2017), Hua (2020), and Bilel (2020). In recent years, the field of behavioral finance has witnessed efforts to elucidate the mechanisms through which investors' emotions influence stock values and overall stock market performance. 2-1. Investors' Expectations of Future EarningsInvestors' expectations of future earnings encompass the prevailing sentiments and attitudes held by investors regarding the prospective performance of a company, which can range from optimism to pessimism (Aboody, 2018). It is worth noting that researchers often approach survey-based data with a certain degree of caution due to the potential disparity between survey responses and actual behavioral patterns. Consequently, gauging expectations through trading activities provides a means to discern irrational investor behavior. Statement No. 1 issued by the Financial Accounting Standards Board underscores the significance of profit as a metric employed by investors to assess profitability, dividend-paying capability, forecast future earnings, and extend credit to other firms (Sinha, 2016). Therefore, it is evident that a company's profit margin can exert a notable influence on the stock market. 3-2. Investor Sentiment and Their Expectations of Future EarningsThe present research endeavors to explore the impact of investors' sentiments at the capital market level on the misvaluation of stocks. Specifically, it investigates the relationship between these sentiments and investors' expectations concerning future earnings. In this study, we anticipate that investors may perceive losses as more stable during periods characterized by reduced emotional intensity and less stable during periods marked by heightened emotional sentiment. Furthermore, it is posited that the stability of earnings is lower (higher) during periods of low (high) sentiment, with this disparity being particularly pronounced for loss-making companies as compared to profitable ones.The research hypotheses are articulated as follows:H1: There is a negative and significant relationship between investors' sentiments and the sustainability of losses.H2: There is a positive and significant relationship between investors' sentiments and the stability of earnings.MethodologyThis research falls under the category of post-event analysis, utilizing historical information extracted from companies listed on the Tehran Stock Exchange. The statistical population for this study comprises companies admitted to the Tehran Stock Exchange between 2010 and 2019. A carefully selected sample of 1630 company-year observations, was employed for analysis. To test the research hypotheses, composite data were utilized, and multivariate regression models were employed for estimation.ResultsThe first research hypothesis posited that there exists an inverse and statistically significant relationship between investors' sentiments and the sustainability of losses. However, based on the results presented in Table 1, the significance level of the variable representing investors' sentiments surpasses the 5% threshold, indicating that there is no substantial relationship between investors' sentiments and the sustainability of losses. This suggests that investors' emotions do not exert a significant impact on the persistence of losses.Similarly, the second research hypothesis postulated a direct and meaningful relationship between investors' sentiments and the stability of earnings. Yet, the findings in Table 2 reveal that the significance level of the variable related to investors' sentiments exceeds the 5% significance level, signifying that there is no substantial relationship between investors' sentiments and the stability of earnings. In essence, it implies that the sentiments of investors do not wield a significant influence on earnings stability.DiscussionIn the current research, it was initially hypothesized that investors in loss-making companies would perceive losses as more stable during periods characterized by reduced emotional intensity and less stable during emotionally charged periods. These results underscore the complexity of investor behavior and the challenges in accurately predicting how emotions influence investment decisions and expectations. The findings imply that other factors or variables not considered in the current research may play a more substantial role in shaping investors' expectations of future earnings in both loss-making and profitable companies.ConclusionThe research outcomes indicate that in both loss-making and profitable companies, investors' sentiments do not wield a statistically significant influence on their expectations of future earnings. This suggests that investors' expectations regarding future earnings may not be accurately formed. Even in the case of profitable companies, investors' emotions do not appear to significantly impact their profit expectations. These results may be attributed to investors' potentially inadequate understanding of future earnings, which could give rise to emotional behaviors. Addressing this issue calls for intervention by capital market analysts and relevant institutions, with a focus on enhancing investor awareness. Initiatives should be developed to raise investors' knowledge levels, thereby contributing to the normalization of the broader market and the fundamentals of listed companies.It's worth noting that these findings appear to contradict those of Riedl (2021). In the Iranian economic context, these results apply similarly to both loss-making and profitable companies, indicating that emotions may not be a significant factor influencing profit expectations on the Tehran Stock Exchange. Moreover, these findings align partially with the results of BashiriManesh and Oradi (2018).
