Mona Abednazari; Iraj Noravesh; Ebrahim Ebrahimi
Volume 10, Issue 39 , October 2013, , Pages 147-166
Abstract
Intrinsic value of a company depends on its financial and investment decisions. Companies with different investment opportunities are priced different in the market. The set of investment opportunities of companies are influenced by their current status in their life cycle.In this study, based on data ...
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Intrinsic value of a company depends on its financial and investment decisions. Companies with different investment opportunities are priced different in the market. The set of investment opportunities of companies are influenced by their current status in their life cycle.In this study, based on data from a sample of Tehran Stock Exchange listed companies during the period of 1385 to 1389, relationship between investment opportunities and earnings in according to corporate life cycle were examined.Results showed that there is a significant relationship between investment opportunities and earnings response coefficients. The results showed that the explanatory power of relationship between earnings and investment opportunities in companies differs with their life cycle stages. The companies that are in the growth phase of the life cycle, the relationship between earnings and investment opportunities is stronger than the companies that are in the recession phase of the life cycle.
naser izadinia
dariush forughi
Mehdi Arabsalehi; Narges Hamidian; Hadi Amiri
Abstract
The purpose of this study is investigating the role of accounting information uncertainty on investors’ reaction to earnings announcement, as well as investors’ reaction to good earnings news. For doing so, a sample of 162 listed companies in the Tehran Stock Exchange in the period 1384 to ...
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The purpose of this study is investigating the role of accounting information uncertainty on investors’ reaction to earnings announcement, as well as investors’ reaction to good earnings news. For doing so, a sample of 162 listed companies in the Tehran Stock Exchange in the period 1384 to 1394 have been selected. Three criteria including information quality, cash flows’ uncertainty (traditional and matched- firm method) were used for calculating the information uncertainty. The results of hypotheses test indicated when there is high information uncertainty (compared to low uncertainty), investors’ reaction to earnings announcement is less. Also, under high uncertainty, investors display less reaction to good news that this response is consistent with the conservatism approach.
Shamsolah Shirinbakhsh; Zohreh Arefmanesh; Ameneh Bazrafshan
Volume 9, Issue 33 , April 2011, , Pages 149-176
Abstract
Prior researches suggest that auditor specialization and auditor tenure increase audit quality and consequently improve quality of disclosed information and decrease information asymmetry. So the purpose of this paper is to examine the relationship between a company’s bid-ask spread, as a proxy ...
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Prior researches suggest that auditor specialization and auditor tenure increase audit quality and consequently improve quality of disclosed information and decrease information asymmetry. So the purpose of this paper is to examine the relationship between a company’s bid-ask spread, as a proxy of information asymmetry, and auditor tenure and specialization from 2002 to 2010 in the companies listed in Tehran Stock Exchange. Using regression analysis,the findings revealed that there is a negative and statistically significant relationship between auditor tenure and auditor specialization with information asymmetry. In other words auditor specialization and high auditor tenure decrease information asymmetry. In addition separating auditor tenure into short, medium and long periods confirmed the results too. Also the results show that the relationship between auditor tenure and information asymmetry is not influenced by selection of specialists or non-specialists.
D foroghi; S.A hashemi; H amiri; S zafari
Volume 9, Issue 36 , January 2012, , Pages 149-169
Abstract
The main purpose of this research is to compare the relative informational content of operating and financing cash flows of three and five section cash flow statement in explaining future stock return. The time range of research is companies cash flow statements between 1382-1388. The population of research ...
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The main purpose of this research is to compare the relative informational content of operating and financing cash flows of three and five section cash flow statement in explaining future stock return. The time range of research is companies cash flow statements between 1382-1388. The population of research is all companies Listed in Tehran Securities and exchange, from which, a sample of 80 Iranian listed firms was chosen. The type of data needed for hypotheses testing is Pooling-Data. Unrestricted and restricted regressions were utilized to test the hypotheses. The statistical methods used consist of adjusted- R² and Wald-test statistic. Findings indicate that both operating and financing cash flow of 3-section cash flow statement have more relative informational content than the operating and financing cash flow of 5-section cash flow statement in predicting future stock return.
shamsolah shirinbakhsh
Nezamedin Rahimian; Mahmood Ghorbani; Keyvan Shbani
Volume 10, Issue 40 , January 2014, , Pages 151-175
Abstract
Cash is one of the most crucial resources in every enterprise and making a balance between available cash and its requirements is the most important criteria for safety economic in every entity. All the companies that have enough cash for their operation and those that hold cash more than their need, ...
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Cash is one of the most crucial resources in every enterprise and making a balance between available cash and its requirements is the most important criteria for safety economic in every entity. All the companies that have enough cash for their operation and those that hold cash more than their need, have some troubles. So in this study the elements that may have influence on cash holding and the association between persistent excess cash holding on the Tehran stock exchange were examined for achieving this target. Regard to existing constraints. 73 companies for a seven years period (1384-1390) were selected as sample. With respect to the data, fixed effect regression was used. Our result show that there is a positive and significant association between firm size, net working capital, operating cash flows and financing cash flows with cash holding and variables such as leverage, growth option, variability of cash flows, close cash substitutes and level of investment opportunities have no significant relationship with cash holding. Furthermore the results of second part of this research shows that excess cash holing in both form of transitory and persistent have no influence on shareholder value.
V Khodadadi; M Arabi; F Taheri
Volume 9, Issue 34 , July 2012, , Pages 151-172
Abstract
The timing of an annual report announcement is a disclosure decision that managers must make. The users recognize timeliness as an important characteristic of usefulness of accounting information. In this research, we investigate relationship between a set of explanatory variables (such as returns on ...
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The timing of an annual report announcement is a disclosure decision that managers must make. The users recognize timeliness as an important characteristic of usefulness of accounting information. In this research, we investigate relationship between a set of explanatory variables (such as returns on equity, changs of stock return, financial risk and size) and timing of annual financial reporting. we have used the financial data of 88 firms listed at Tehran Stock Exchange (TSE), that have analyzed for during 2004 to 2010 by using of the Panel Data System and Ordinary Least Square Regressions (OLS) Model. The results of regression show that timeliness in reporting by TSE listed companies is influenced by their profitability. We find that returns on equity and changes in stock returns are positively associated with the annual financial reports earlier and financial risk and changes in financial risk are negatively associated with the annual financial reports earlier. In addition, the results indicate that the timing of annual report releases is significantly affected by company size.
Sh. Khajavi; M. Sayrani; A. Allahyari
Volume 8, Issue 30 , July 2010, , Pages 151-177
Abstract
This study aims at investigating the feasibility of the application of "Balanced Scorecard", in performance measurement of Shiraz hospitals. Balanced Scorecard is one of the management accounting techniques which was first introduced by Robert Kaplan and David Norton in 1992. This technique organized ...
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This study aims at investigating the feasibility of the application of "Balanced Scorecard", in performance measurement of Shiraz hospitals. Balanced Scorecard is one of the management accounting techniques which was first introduced by Robert Kaplan and David Norton in 1992. This technique organized in four distinct prospective: financial, customer, internal processes and learning and growth. Four prospective related to balanced scorecard were analyzed based on one main hypothesis and four subsidiaries. The gained results of Statistical analysis showed that indicating in all prospective of Balanced Scorecard in Shiraz hospitals is possible, but yet pre required and needed thought to implementing this technique in Shiraz hospitals is not done well. We found out through more surveys that customer prospective was the most noticeable prospective and internal processes, financial and learning and growth prospective were ranked respectively.
Seyed Ali Hosseini; Afsaneh Bahiraei
Abstract
Voluntary disclosure is a surplus information on the legal requirement that includes financial and non-financial information for the more clarity of the company's processes. Voluntary disclosure as a kind of informed mechanism may be associated with different processes in the company. As a result, companies, ...
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Voluntary disclosure is a surplus information on the legal requirement that includes financial and non-financial information for the more clarity of the company's processes. Voluntary disclosure as a kind of informed mechanism may be associated with different processes in the company. As a result, companies, based on the composition of their board of directors, make decisions about the voluntary disclosure of information and may vary according to the type of political and non-political directors. The purpose of this study was to investigate the effect of political connection on the information voluntary disclosure in companies listed in Tehran Stock Exchange. In this regard, numbers of 124 companies were selected for the period from 2012 to 2017. To measure voluntary disclosure, the Botosan (1997) checklist and for measuring political connections, political cost index from Faccio (2006) has been used. The panel data approach was also used to test the research hypotheses. The results showed that political connection has a negative and significant effect on the voluntary disclosure of information. In fact, companies that have more political connection are more inclined to voluntarily disclose information.
Saied sehhat
Volume 11, Issue 43 , October 2014, , Pages 153-184
Abstract
Bankruptcy is a challenge that especially in this highly competitive era, many companies are faced with. Therefore the analysis and forecasting of bankruptcy are vital, especially for investors. Accordingly, the present study aims to introduce two techniques which are based on Data Envelopment Analysis ...
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Bankruptcy is a challenge that especially in this highly competitive era, many companies are faced with. Therefore the analysis and forecasting of bankruptcy are vital, especially for investors. Accordingly, the present study aims to introduce two techniques which are based on Data Envelopment Analysis (DEA) to analyze and predict bankruptcy of the food companies which are listed on Tehran Stock Exchange.
The study is descriptive- functional andassesses the models of bankruptcy analysis, and 58 Food Companies Listed on the stock exchange have been considered as statistical population.
The study results show that the DEA-Discriminant Analysis model was 92% accurate in predicting the bankrupt companies and 70% accurate in predicting the successful companies while the DEA-Additive model was 70% accurate in predicting the bankrupt companies and 90% accurate in predicting the successful companies, so in total the DEA-Discriminant Analysis model is more accurate than the DEA-Additive model, and it is preferred.
H. Kazemi; M. Toreini
Volume 8, Issue 29 , April 2010, , Pages 155-170
Abstract
In this study, related properties of accounting earnings as earnings volatility and earnings persistence have been studied. Theory in this study, poor matching as “noise” in the economic relation between revenues and expenses is introduced. As a result, poor matching ...
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In this study, related properties of accounting earnings as earnings volatility and earnings persistence have been studied. Theory in this study, poor matching as “noise” in the economic relation between revenues and expenses is introduced. As a result, poor matching increases the volatility of earnings and decreases the persistence of earnings. Test had been accepted from the 113 companies in Tehran Stock Exchange during the recent eight years the indicated results consistent with the existing theory. Noise in the economic relation between revenues to expenses (poor matching) and earnings volatility during recent years is decreased and earnings persistence is increased.
Mahmoud Lari Dashtbayaz; Mohammad Javad Saei; Arash Ghorbani
Abstract
In this study, using a sample consisting of 2702 firm-year observations of firms listed in Tehran Stock Exchange, which their data were obtained for a period of 11 years from 1382 to 1392, we investigate whether firms with small pre-managed negative earnings, manage their income through real earnings ...
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In this study, using a sample consisting of 2702 firm-year observations of firms listed in Tehran Stock Exchange, which their data were obtained for a period of 11 years from 1382 to 1392, we investigate whether firms with small pre-managed negative earnings, manage their income through real earnings manipulation to avoid losses or not. The implication of behavioral studies suggests zero earnings threshold might function as an important psychological reference for which managers have strong incentive to beat or exceed it and they are likely to engage in activities like offering customers price discounts to temporally increase sales, overproduction to lower cost of goods sold and decreasing discretionary expenditures to improve earnings reported to stakeholders. Our initial findings documented a significant discontinuity and irregularity in the pooled cross-sectional empirical distributions of earnings scaled by the total assets in intervals close to zero. Despite the evidence was consistent with earnings management explanation, other statistical findings did not provide evidence and support the prediction that managers boosted their income through activities like unusual sales discounts, overproduction, and cutting discretionary expenses to meet the earnings threshold
Volume 11, Issue 42 , July 2014, , Pages 157-184
Esfandiyar Malekian; Farazandeh Abdipoor
Volume 11, Issue 41 , April 2014, , Pages 157-173
Abstract
Studies regarding of auditor rotation due to the effects on auditor independence and audit quality, is very important. Auditor independence affects auditor – client relationship and finally will be useful to audit quality and earning conservatism. The present research examines the relation between ...
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Studies regarding of auditor rotation due to the effects on auditor independence and audit quality, is very important. Auditor independence affects auditor – client relationship and finally will be useful to audit quality and earning conservatism. The present research examines the relation between audit firm rotation and earnings conservatism. In this research for conservative representation of the profit before tax is applied. By examining 63 companies listed in Tehran Stock Exchange during the period 1384-1389 and using multiple linear regression analysis, The results indicated a direct and significant relation between audit firm rotation and reporting earnings Conservative Companies listed on the Tehran Stock Exchange. The findings of this study revealed that by audit firm rotation increases conservatism in reported earnings The companies listed in Tehran Stock Exchange.
Seyed Kazem Ebrahimi; Bahraminasab Ali; mohaddeseh hamedi
Abstract
Investors need reliable information for decision making in order to make optimal economic decisions. This research investigates the effect of the modified auditor's opinion on the debt structure and excess stock returns of the companies admitted to the Tehran Stock Exchange. The type of auditor's opinion ...
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Investors need reliable information for decision making in order to make optimal economic decisions. This research investigates the effect of the modified auditor's opinion on the debt structure and excess stock returns of the companies admitted to the Tehran Stock Exchange. The type of auditor's opinion has been considered as independent variable and debt structure and excess stock returns as dependent variables. The statistical sample included 102 companies admitted to the Tehran Stock Exchange during the years 2012-2016. The required data have been collected from the Tehran Stock Exchange Library, Compact CD of Rah Avard Novin and the Codal site. Data analysis has been performed using Eviews 9 software. In the study, a multivariate regression model and panel data method were used. To study the relationship between the mentioned variables, two hypotheses were developed. The results show that there is a negative and significant relationship between the modified auditor's opinion and debt structure and excess stock returns
seyyed ali paytakhti oskooe; Hassan Hadipour; hasan aghamiry
Abstract
The value at risk as one of the risk measurement criteria can be used to determine the Stock Optimal Portfolio. The main objective of this study is to determine the optimum portfolio of shares using value at risk. To this end, data from the weekly prices of the stock of 17 selected cement companies (which ...
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The value at risk as one of the risk measurement criteria can be used to determine the Stock Optimal Portfolio. The main objective of this study is to determine the optimum portfolio of shares using value at risk. To this end, data from the weekly prices of the stock of 17 selected cement companies (which their data have been available) has been used during the period January 2012 to March 2017. First, the value at risk for each share is calculated using a parametric approach and a variance-covariance method, and the optimal portfolio weights are comprised of the shares of the companies mentioned. Then employing nonlinear planning, optimization of the stock portfolio with the lowest value at risk was performed with respect to the expected returns. Based on the empirical results, the highest weight in the optimal portfolio belongs to the stock, which has high expected returns and has the lowest value at risk among the companies under study.
Seyyed Morteza Nabavian; Seyyed Ali Nabavi Chashmi; Iman Dadashi; Bahram Mohseni Maleki
Abstract
One of the most important factors affecting financing issues as a challenge for companies is to maintain financial flexibility. Internal Financial flexibility is affected by the company's liquidity. The cash holding indicates the ability of a company to deal with the risks, which largely depends on changes ...
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One of the most important factors affecting financing issues as a challenge for companies is to maintain financial flexibility. Internal Financial flexibility is affected by the company's liquidity. The cash holding indicates the ability of a company to deal with the risks, which largely depends on changes in cash flow and dividend policy of the company. In order to measure the dividends adjustment speed, which is a benchmark for dividend smoothing, the rolling window regressions based on the Lintner model (1956) was used Faulkender and Wang (2006) method is applied for measuring the marginal value of cash, which is an indicator for measuring financial flexibility. According to the research constraints, 105 companies listed in Tehran Stock Exchange during the period of 2008-2018 using the STATA software have been investigated. The results of the research show that the marginal value of cash does not have a significant effect on the dividends adjustment speed. Also, the Liquidity shock has no effect on the relationship between the marginal value of cash and the dividends adjustment speed
Arash Ghorbani; Mohammad Reza Abbaszadeh
Abstract
Using a sample including 2642 observations of 2003-2016 annual data of firms listed in Tehran Security Exchange, this study investigates the implications of correlation between non-discretionary accruals and partitioning variables when testing the positive accounting theories hypotheses. In earnings ...
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Using a sample including 2642 observations of 2003-2016 annual data of firms listed in Tehran Security Exchange, this study investigates the implications of correlation between non-discretionary accruals and partitioning variables when testing the positive accounting theories hypotheses. In earnings management detection tests, it is common for researchers to use variables which partition their sample into two groups, for which differences in motivation for income manipulation are predicted. Since earnings management stimuli are assumed to be correlated with variables like firm performance, leverage or size, the use of these proxies are popular in empirical tests of positive accounting theories hypotheses. The correlation between non-discretionary accruals and the partitioning variable implies that part of the variation of non-discretionary accruals is generated by the partitioning variable. If accruals model does not control for the correlation, this part will be added to the discretionary accruals. In this study, we provide evidence that, when correlation between non-discretionary accruals and the above-mentioned partitioning variables remains uncontrolled, accrual-based models tend to generate measurement error in the estimate of discretionary accruals that significantly affects the sign and the magnitude of correlation between discretionary accruals and the partitioning variables. The findings of a Monte Carlo simulation also indicate that the Jones model relatively generates less type I error when it is adjusted to control for the relation between non-discretionary accruals and firm performance.
Seyed kazem Ebrahimi; Sadegh Sarbazi Azad
Abstract
Today's, knowledge-based economy represents a great change and shift from financial resources to knowledge. Although the role of physical and financial assets in order to achieve the organization's objectives cannot be denied, but what is important is that today's science, technology, ...
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Today's, knowledge-based economy represents a great change and shift from financial resources to knowledge. Although the role of physical and financial assets in order to achieve the organization's objectives cannot be denied, but what is important is that today's science, technology, good customer relations, information systems, those constitute organization’s Intellectual Capital, are known as key success factors in information era. It’s believed that intellectual capital, including human capital and structural capital, hasimportant and growing role in firm’s performance and effects on its financial achievements. This study examined the interactive effects of intellectual capital and its components on the value of the investment efficiency of listed companies in Tehran Stock Exchange. To do so, the information of 105 companies during 1388 to 1393 was selected from companies listed on the stock exchange. The results of the study indicate a significant and positive relationship between Interactive effects of the coefficient value added andintellectual capital and its components including efficiency of communicational and structural capital and investment efficiency on the value of the company.
mahnam molaei; naser izadinia; hadi Amiri
Abstract
The purpose of this study is to investigate the information content of a new risk measure (earnings downside risk) in financial statement analysis, which is based on the below-expectation variability in earnings. So, the relation between earnings attributes, earnings beta, earnings volatility, return ...
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The purpose of this study is to investigate the information content of a new risk measure (earnings downside risk) in financial statement analysis, which is based on the below-expectation variability in earnings. So, the relation between earnings attributes, earnings beta, earnings volatility, return downside risk and negative skewness of stock return with earnings downside risk were examined. Five main hypotheses and seven sub-hypotheses were defined and data were analyzed for 91 companies members of Tehran stock exchange of the period from 2000 to 2014. The research regression model was tested using panel data method. The results of research show that accruals quality, persistence, predictability, smoothing, timeliness, earnings beta, earnings volatility, return downside risk and negative skewness of stock return have a significant relation with the earnings downside risk. Therefore, it can be calculated that information on this risk measures falls in the earnings downside risk. Relevance and conservatism variables, although in regression analysis did not have a significant relation with the earnings downside risk along with other risk factors, but in the correlation analysis, there is a significant and negative relationship with the earnings downside risk.
Financial Accounting
Roohollah Arab; Mohammad Gholamrezapoor; Narjes Amirnia; Seyed pouria Kazemi
Abstract
According to the of alignment and entrenchment theories, the CEO power may lead to a reduction audit fees by increasing the earning quality and reducing audit risk, or through opportunistic earnings management and fraudulent financial reporting can lead to increased agency problems and audit risk, and ...
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According to the of alignment and entrenchment theories, the CEO power may lead to a reduction audit fees by increasing the earning quality and reducing audit risk, or through opportunistic earnings management and fraudulent financial reporting can lead to increased agency problems and audit risk, and ultimately to increased audit fees. Therefore, the purpose of the this study is to investigate the relationship between CEO power and audit fees and study the moderating effect of family ownership on this relationship with respect to alignment and entrenchment theories. To test the research hypotheses, the financial information of 88 companies listed on the Tehran Stock Exchange in the period between 2012 to 2019 has been used. The results of statistical tests show that there is a negative and significant relationship between CEO power and audit fees. In addition, the results showed that family ownership also moderated and exacerbated the relationship between CEO power and audit fees.
Amir Hossein Erza; Moslem Peymany; Farnaz Seifi
Abstract
Credit risk is one of the most important risks that affect Monetary and financial institutions. The main purpose of the paper is to assess the effect of credit risk on stock returns. Firstly, by reviewing the theoretical foundations, researches and expert opinion, quantitative and qualitative factors ...
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Credit risk is one of the most important risks that affect Monetary and financial institutions. The main purpose of the paper is to assess the effect of credit risk on stock returns. Firstly, by reviewing the theoretical foundations, researches and expert opinion, quantitative and qualitative factors influencing the credit rating were determined. Then a questionnaire prepared according to the experts' opinions based on the Iranian environment, the degree importance of the indicators was determined and Using the Topsis model, the ranking of 106 Tehran Stock Exchange (TSE) companies in 2011-2015 was based on credit risk with the same and different significance of the indicators Then, based on the results of the ranking, stock portfolios was formed, finally, the effect of credit risk on stock returns in two different situations With the same and different significance were determined. According to the results, the effect of credit risk on returns in both of the same and different degree of importance, by analyzing the combined data, meaningless and by analyzing panel data, is meaningful and reverse.
Accounting report
Elnaz Akbarlou; Mehdi zeynali; Mehdi alinezhad sarokolaei; Rasoul baradaran hassan zadeh
Abstract
Narcissist managers, with behavioral characteristics such as selfishness, domination, and self-aggrandizement, don’t consider rules and regulations important. They manipulate detailed accounting reports opportunistically using positive words in an optimistic manner. This study aims to investigate ...
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Narcissist managers, with behavioral characteristics such as selfishness, domination, and self-aggrandizement, don’t consider rules and regulations important. They manipulate detailed accounting reports opportunistically using positive words in an optimistic manner. This study aims to investigate the relationship between managers' narcissism and the optimistic tone of financial reporting with the moderating role of earnings management. To measure narcissism, two proxies are used: the area of managers’ signatures and the ratio of managers' remuneration to the total annual salary of employees, and vocabulary frequency as a criterion to measure optimistic tone. The sample includes 115 companies listed in Tehran Stock Exchange throughout 2011- 2018. To test the research hypotheses, regression has been used. Results indicate that there is a positive and meaningful correlation between the narcissism of managers and the optimistic tone in financial reporting. In other words, narcissist managers consider financial reports prepared based on an optimistic tone as an opportunity to satisfy their insatiable desire for self-promotion. Earnings management has got a positive moderating effect on the correlation of narcissism of managers and optimistic tone in financial reporting.
