S. A. Khalifeh Soltani; S. Khajavi
Abstract
On the basis of Pecking Order Theory, when firms need resourcesthey usually rely on debts since capital is considered expensive due toinformation asymmetry. Moral hazard is a kind of informationasymmetry; therefore, it is expected that it has relationship withcapital structure. The purpose of this study ...
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On the basis of Pecking Order Theory, when firms need resourcesthey usually rely on debts since capital is considered expensive due toinformation asymmetry. Moral hazard is a kind of informationasymmetry; therefore, it is expected that it has relationship withcapital structure. The purpose of this study is to investigate the impactof moral hazard on capital structure. In order to conduct the research132 firms were selected from listed firms in Tehran Stock Exchangebetween years 2006_2012.research hypothesis was tested usingstructural equation model. The results show that moral hazard hassignificant negative impact on capital structure, and the negative effectof moral hazard on capital structure is moderated by control variables
gholamreza solaimani
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 ...
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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
Hamid Bodaghi; HamidReza Bazaz Zadeh
Volume 5, Issue 17 , April 2007, , Pages 173-212
Abstract
The most investigation of earnings Management literature are about why and how earnings management are done and what the results of this behavior i s. But there have been very few researches on the ways to controlling this. This research pays attention to more and more complete disclosure as an approach ...
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The most investigation of earnings Management literature are about why and how earnings management are done and what the results of this behavior i s. But there have been very few researches on the ways to controlling this. This research pays attention to more and more complete disclosure as an approach for reducing earnings management.
In this research, disclosure quality is prepared and measured, using a check list containing 235 mandatory disclosure items (as Iranian accounting standards). Earnings management is also measured, using modified Jones Model, on discretionary accruals, and are finally used for testing the hypothesis. Hypothesis are tested as cross- sectional for the years 1382 to 1384 and accumulated.
The results in year to year investigations only for the year 1384 show statistically significant negative relationship between disclosure quality and earnings management. And in total of three years, investigations show no significant relationship.
Financial Accounting
Mohammad Khatiri; Ali Ghasemi; Mahtab Darvishtabar Ahmad Chali; Omid Mehri Namak Avarani
Abstract
The present study investigates the effect of ownership structure in adjusting relationship between related party transactions and unexpected audit fees in loss-making companies. In this way and order to achieve research objectives; Data of 71 companies were extracted for a ten-year period from the beginning ...
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The present study investigates the effect of ownership structure in adjusting relationship between related party transactions and unexpected audit fees in loss-making companies. In this way and order to achieve research objectives; Data of 71 companies were extracted for a ten-year period from the beginning of 2010 to the end of 2019, the research variables were calculated and the necessary statistical tests were performed. The method of this research is descriptive-correlational and its design is experimental using post-event approach. The Results Findings There is a positive and significant relationship between transactions with related parties and unexpected audit fees, and the independence of board of directors and duality of CEO's role have a significant effect on this relationship. On the other hand, the size of the board and CEO stability; They had no significant effect on this relationship. Conclusion say Transactions with related parties increase the unexpected costs of auditing and the independence of the board of directors and the duality of the role of the CEO reduce the relationship between transactions with related parties and unexpected auditing costs.
ameneh bazrafshan
Abstract
The purpose of this study is to examine the impact of Audit Committee Quality (ACQ) on achieving Internal Control over Financial Reporting (ICOFR) in short run. So, the current paper investigates the impact of ACQ on Financial Reporting Quality (FRQ) including Reliability, Relevance and Timelines of ...
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The purpose of this study is to examine the impact of Audit Committee Quality (ACQ) on achieving Internal Control over Financial Reporting (ICOFR) in short run. So, the current paper investigates the impact of ACQ on Financial Reporting Quality (FRQ) including Reliability, Relevance and Timelines of financial reporting That is Information Asymmetry (IA) as the final goal of financial reporting. Regarding the latent of ACQ and FRQ, this paper use structural modeling with OLS approach by Smart-PLS software. Findings indicate that ACQ reduces IA. However, there is no relationship between ACQ and FRQ. It was also revealed that FRQ reduces IA.
Abbas i Aflatooni
Abstract
Some valuation models use the accounting earnings and others use the cash flows as inputs to measure the intrinsic value of stocks. The empirical evidences show that the performance of earnings-based models is generally higher than that of non-earnings-based models. In addition, based on empirical evidences, ...
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Some valuation models use the accounting earnings and others use the cash flows as inputs to measure the intrinsic value of stocks. The empirical evidences show that the performance of earnings-based models is generally higher than that of non-earnings-based models. In addition, based on empirical evidences, earnings management that is done using accruals and real activities manipulation; shift the earnings quality, and using the managed earnings in earnings-based valuation models lead to incorrect results. The first stage of this research that is done on 116 firms listed in Tehran Stock Exchange from 2003 to the end of 2013 compares the performance of Residual Income Model (RIM) and discounted cash flow model (DCF). The second stage compares the performance of mentioned models in suspected and non- suspected firms to earnings management and to control the effects of some variables on results, the regression analyses is applied. The research results show that, although in total sample the performance of RIM is higher than that of discounted DCF, the performance of RIM is significantly lower than that of DCF in suspected firms.
Mohammad Poorsamiei; Mohammadreza Abdoli; Hasan Valiyan; Mehdi Safari gerayli
Abstract
Critical thinking in any profession will help the dynamism of that profession to create responsibility. Auditing also requires critical thinking to meet the needs and expectations of stakeholders in the capital market, a thinking that better understands deviant approaches, distortion, and fraud in financial ...
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Critical thinking in any profession will help the dynamism of that profession to create responsibility. Auditing also requires critical thinking to meet the needs and expectations of stakeholders in the capital market, a thinking that better understands deviant approaches, distortion, and fraud in financial performance, and demonstrates a stronger understanding and intuition against such situations. This research seeks to identify the approaches of critical thinking of auditors and its representation in the form of link analysis. In order to identify the criteria for critical thinking in the profession, systematic search was used on theoretical foundations with the help of accounting experts. Through metasyn thesis analysis, the propositions related to critical thinking in the profession were identified and as a result, the components of analytical capability, inferential capability and intuitive capability were determined as important dimensions in creating critical thinking in the auditing profession. There was a systemic link between connections and impact. The results showed that in order to strengthen the approaches of critical thinking in professional judgments, the existence of technical and specialized knowledge is considered as an important stimulus that gives the auditor results such as improving the level of intuition and the power of mental analysis.
Financial Accounting
Mohsen Imeni; Seyyed Mohammad Moshashaei
Abstract
The two approaches are more prominent in the accounting literature, accrual-based earnings management and manipulating the actual activities however, the present study is considered the third type of earnings management model, namely a classification shifting. The purpose of this study is to investigate ...
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The two approaches are more prominent in the accounting literature, accrual-based earnings management and manipulating the actual activities however, the present study is considered the third type of earnings management model, namely a classification shifting. The purpose of this study is to investigate the effect of constraints on earnings management strategies on the application of shifting strategy in earnings classification in the Iranian capital market. The research sample consisted of 114 firms from 2013 to 2021 (1026 observation). Logistic regression models have been used to test research hypothesis. The results of the study show that financial health, institutional shareholders, audit firm size and market share have a negative and significant effect on the classification shifting. Also, the operating cycle has a positive and significant effect on the c classification shifting; and its tenure does not have a significant effect on the classification shifting. Additional tests indicated large companies have a greater incentive to do classification shifting (a form of earnings management) compared to small companies, because they have greater political costs.
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 ...
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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
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 ...
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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
Shahla Talari; Fatah Behzadian; Mehdi Safari gerayli; Rahman Saedi
Abstract
Changing the nature of behavioral knowledge in the auditing profession from purely classical processes in the development of auditors' functions to philosophical and cognitive processes has increased the quality of work life in this field. The purpose of this study is to present a model of auditors' ...
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Changing the nature of behavioral knowledge in the auditing profession from purely classical processes in the development of auditors' functions to philosophical and cognitive processes has increased the quality of work life in this field. The purpose of this study is to present a model of auditors' psychological well-being and evaluate identified themes in the auditing profession. This study employs an exploratory methodology with analytical elements. Because of the lack of an integrated framework regarding the recognition of auditors' psychological well-being dimensions, we identified the study's themes through 12 interviews and coded them using thematic analysis. Then, using two processes of fuzzy Delphi analysis and classic Delphi, we analyzed the reliability of the organizing and basic themes. In the quantitative part, to explain the themes confirmed from the Delphi analysis stage in the audit professional functions, we applied the fuzzy network analysis. In this study, according to the theoretical saturation point in thematic analysis, 12 accounting experts participated, and in the quantitative part, 30 auditors with more than five years of experience in the auditing profession who had work experience and technical knowledge participated. The results of the study in the qualitative part indicate the existence of three overarching themes, six organizing themes, and 38 basic themes. Also, based on the result of the Delphi analysis, it was determined that from the total of 38 basic themes, 17 final themes were entered into the fuzzy network analysis in the form of six organizing themes, and the findings showed that the most effective organizing theme of psychological well-being in the context of professional auditing functions is the theme of perception stimulation of auditors. Findings also revealed that strengthening the internal locus of control is the most effective aspect of psychological well-being in auditing. 1- IntroductionExpanding behavioral sciences' influence on auditing in recent decades has transformed auditors' traditional approaches and professional roles, enhancing the quality of auditing reports. This is due to the interplay between professional judgment and auditing standards within the auditors' behavioral and cognitive domains. (Zhao et al,2023). A significant development in auditing knowledge is the concept of psychological well-being. Psychological well-being encompasses auditors' emotional and mental states, their overall life and career satisfaction, as well as their mental efficiency and functionality (Broberg et.al, 2020). According to Chen et al. (2022), well-being is closely tied to an individual's perception of their experiences, leading to higher mental satisfaction and more qualified roles in professional responsibilities. In essence, psychological well-being results in positive emotions, a sense of purpose, autonomy, and the ability to form meaningful relationships with others (Mahmoudi and Sajadi Nejad, 2022). Literature ReviewWhen investigating the findings of a study in the field of Disease Psychology, a group of psychologists, guided by Seligman et al. (1999), concluded that despite significant achievements in developing effective therapies, focusing on the causes of diseases, especially mental ones, can lead to a reduction in fatal diseases in society. They aimed to explore the factors contributing to increased productivity in people's lives and embarked on a new cycle of studies to assess individual capabilities. This effort ultimately led to the development of a gradual psychological well-being approach within the domain of positive psychology. Therefore, one prominent focus in recent years has been on psychological well-being, which seeks to redefine the professional life of individuals through the lens of positive psychology (Haghayeghi and Moghaddam Zadeh, 2022). O’Driscoll et al. (2004) were pioneers in formalizing the concept of psychological well-being within the framework of positive psychology. They emphasized the infusion of happiness and satisfaction into personal performance as a fundamental achievement of this concept.On the other hand, Gurel (2009) emphasizes active participation in the professional environment as key to defining psychological well-being. It involves individuals striving to experience positive self-efficacy and creating a balanced career while attributing meaning to their work relationships. Furthermore, Clark et al. (2007) view psychological well-being as an affective state. They assert that motivation in one's job is driven by the happiness and vitality derived from personal performance, which in turn fosters emotional attachment to one's job. Despite varying definitions of psychological well-being, it is evident that a deeper understanding of this concept is essential for greater effectiveness in the profession. MethodologyThe current study serves a developmental purpose and has an exploratory nature in its results. Furthermore, it adopts a combined approach in data collection. Given the lack of a coherent framework in previous studies for the phenomenon under investigation within the auditing profession, our study aims to present a multi-dimensional model using thematic analysis and the approach outlined by Attride-Stirling (2001) across three coding stages and interviews. In other words, in the first stage, it is attempted to present the themes of the auditors’ psychological well-being model in the form of a multi-dimensional model via analyzing the qualitative part and relying on thematic analysis process. The underlying philosophy of our study combines elements of volunteerism in the universe philosophy with structuralism in the philosophy of science. ResultsGiven the inductive and comparative nature of this study, the basic themes of auditors' psychological well-being are identified in the qualitative phase through thematic analysis. The reliability of these themes is then assessed using both Delphi Fuzzy and Delphi Classic analyses. The study proceeds to identify the most influential themes within the auditors' psychological well-being model through network analysis, specifically employing Fuzzy Analytic Network in the field of auditing. Therefore, thematic analysis was used in the first step to determine the themes related to the auditors’ psychological well-being. Thematic analysis serves as an administrative process that examines the foundations and concepts of the current issue through concurrent content analysis in related studies and interviews to define its dimensions. Typology of thematic analysis according to Attride-stirling (2001) is applied in the present study. The results indicated that strengthening the internal locus of control within the auditing profession (C13) is considered the most critical theme in enhancing psychological well-being in the auditing profession. This theme draws attention to bolstering the professional functions of independent auditors. This basic theme is considered among the organizing themes which stimulate the auditors’ perception and pervasive theme of individual mechanisms in reinforcing psychological well-being. DiscussionThe aim of this study is to conduct a network analysis within the auditors' psychological well-being model to define key factors in the auditing profession. Thematic analysis was chosen to present the model since there was no existing theoretical framework for developing the dimensions of psychological well-being in auditors' professional roles in this study. In total, a hexagonal model was constructed, consisting of three overarching themes, six organizing themes, and 38 basic themes. These themes were developed through 12 interviews with experts and three coding stages, guided by the theoretical saturation point, and were introduced as contributing factors to the development of auditors' psychological well-being. Confirming reliability of the organizing and basic themes was required as two important constructs in the presented model in the qualitative part with the purpose of determining the most effective theme in the auditors’ psychological well-being. Through two separate Delphi Fuzzy and Delphi Classic processes, it was initially found that the six organizing themes displayed high generalizability within recognized categories as pervasive themes. Secondly, out of the 38 primary themes, 21 basic themes were eliminated during two rounds of Delphi Classic analysis based on two criteria: mean and agreement coefficient. As a result, 17 basic themes were confirmed and incorporated into the Fuzzy Analytic Network process. ConclusionTwo key results emerged from the prioritization of organizing and basic themes in the analytical process. Prioritizing organizing themes revealed that the most impactful theme on psychological well-being in the field of professional auditing is 'stimulating the auditors’ perception' (C1), with a relative weight of 0.286, placing it at the top of the matrix. Conversely, 'reinforcing internal locus of control' (C13) was identified as the most crucial basic theme for enhancing psychological well-being in the auditing profession, highlighting its potential significance in strengthening the professional functions of independent auditors.
Accounting and various aspects of finance
Ahmad Mahdavi; Ali Zabihi; Abassali Pouraghajan
Abstract
The purpose of this research is to evaluate the challenging areas of accrual accounting implementation in the General Department of the Ministry of Economy and Finance of Mazandaran province. The methodology of this study is mixed. In the qualitative part, through systematic screening, the challenging ...
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The purpose of this research is to evaluate the challenging areas of accrual accounting implementation in the General Department of the Ministry of Economy and Finance of Mazandaran province. The methodology of this study is mixed. In the qualitative part, through systematic screening, the challenging areas of accrual accounting implementation in the public sector are identified. Subsequently, these dimensions' reliability is assessed in two stages of Delphi analysis. Finally, in the quantitative part, through interpretive ranking analysis, the study seeks to evaluate the areas identified in the context of the General Department of the Ministry of Economy and Finance of Mazandaran province. The results of the study in the qualitative part indicated the existence of 9 challenging areas for the implementation of accrual accounting in the public sector, and during the process of fuzzy Delphi analysis, 8 criteria were confirmed as the reasons for the gap in the implementation of accrual accounting. Then, in the quantitative part, the study determined that the challenge of applying accounting standards of the public sector is a key factor in creating a gap in the implementation of accrual accounting in the General Department of the Ministry of Economy and Finance of Mazandaran province. The results also indicate that the public sector accounting standards, despite various amendments over the years, have tried to improve the implementation of accrual accounting in the public sector.IntroductionWith the emergence of accounting in the public sector, the nature and form of responsibility and accountability has changed so that organizations gradually moved towards transparency through accounting. These organizations were the guardians of public interests and had to consider themselves responsible for the needs of citizens. The dominant approach at the time of the formation of the role of accounting in the public sector was to focus on the cash basis. In doing so, public sector organizations tried to identify and disclose revenues and expenses identically and at the time of occurrence (Ismail, 2023). However, with the beginning of paradigm changes in the broad field of human sciences, this part of the accounting functions of the public sector has also changed, and many organizations have started moving towards the accrual basis in the disclosure of financial events from the mid-80s. In essence, accrual accounting has been considered the cornerstone of reforming financial information systems in public sectors. This shift was created in response to the acceptance of changes from traditional public management (PM) to modern public management (NPM), driven by the low efficiency of accountability and transparency systems. On the other hand, the emergence of legitimacy approaches, borrowed from business management to promote accountability in the public sector, has fueled the development of citizen rights management mechanisms in the last decade, transforming traditional public financial management (PFM) into modern public financial management (NPFM) (Dissanayake and Dellaportas, 2023). MethodologyIn terms of the results, this study is considered part of development research. This is because the issue of identifying the challenging areas of implementing accrual accounting in the public sector has been investigated in previous research as a main variable or complementary to other operational aspects of government accounting, such as budgeting, responsiveness, internal controls, and others. However, it has not been considered as a theoretical framework for explanation in the General Department of the Ministry of Economy and Finance of Mazandaran province. Conducting this study can help the development of theoretical and analytical literature in this field of study. The existence of this gap in the literature led us to present a model and evaluate the challenging areas of implementing accrual accounting in the public sector through the combination of qualitative and quantitative analysis processes. Therefore, in terms of the type of data, this study should be considered mixed, as the qualitative section identifies the challenging areas of accrual accounting implementation in the public sector through systematic screening, and Delphi analysis is used to confirm the reliability level of the identified dimensions. Then, based on the process of interpretative ranking analysis in the quantitative part, the study seeks to evaluate the challenging areas of accrual accounting implementation in the General Department of the Ministry of Economy and Finance of Mazandaran province. ResultIn this study, an effort was made to identify the most relevant dimensions that contribute to gaps in the implementation of accrual accounting in the public sector. This was achieved through systematic screening of research literature and a subsequent Delphi analysis for reliability assessment of these dimensions. Then, through interpretive ranking analysis, the study aimed to determine the most challenging areas in implementing accrual accounting in the General Department of the Ministry of Economy and Finance of Mazandaran Province. The specific analysis revealed that the challenge of applying public sector accounting standards is the most significant factor contributing to the gap in the implementation of accrual accounting in the General Department of the Ministry of Economy and Finance of Mazandaran Province. ConclusionIn interpreting these results, it should be noted that although the public sector accounting standards have undergone various amendments over the years to improve the implementation of accrual accounting, there remains a lack of coverage in aspects of compliance with Clause (d) of Article (28) of the Accession Law. Certain provisions in the law that regulates a part of the government's financial regulations (2), specifically those concerning spending credits and acquisition of capital assets, suggest that the absence of distinct headings in alignment with the program and budget organization could facilitate the reallocation of resources to different expenditure categories within organizations. This is an issue in the public sector for which a specific mechanism, as per Article (30) of the Program and Budget Law, has not been approved, thus impacting the ability to commit and accurately allocate credits and expenses for capital assets. Additionally, although Circular No. 210786/57, dated 11/7/2014, was issued to public sector organizations to address the obligations of excess reporting and credit allocation for saving realized costs, there exists an implementation gap in this directive. This gap affects the supervisory role in liability obligations, leading to an excess in credit allocation often recorded under other debt headings instead of being classified as reserves for realized expenses or capital obligations.
Financial Accounting
Behrooz Badpa; Sohrab Osta; Fatemeh Darvish-Hoseini
Abstract
Working capital management is crucial for business growth and survival as it maximizes enterprise value and shareholder wealth, thereby maintaining competitive conditions and optimal performance. This study identified and explained accounting variables determining operational efficiency (OE) of the companies ...
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Working capital management is crucial for business growth and survival as it maximizes enterprise value and shareholder wealth, thereby maintaining competitive conditions and optimal performance. This study identified and explained accounting variables determining operational efficiency (OE) of the companies listed on the Tehran Stock Exchange (TSE), Iran, in light of working capital items. The statistical population consisted of all companies, and the samples were 112 cases listed during 2016-2020. Utilizing an applied, descriptive-correlational research design, the relationship between the variables was then established. The dependent variable was OE, evaluated using data envelopment analysis (DEA); and the independent ones were working capital items and dividend growth rate. To investigate the effect of the independent variables on the dependent one, eight hypotheses were formulated, and multivariate linear regression with panel data in a fixed-effects model was implemented. Testing the hypotheses at a 95% confidence interval demonstrated that average period of collection of claims, average debt repayment period, dividend growth ratio, cash holding level, and liquidity ratio have a significant positive effect on OE. Nevertheless, the cash conversion cycle, and average inventory turnover period have negative impacts. Managers are thus suggested to identify working capital items and exploit them along with short/long-term goals in companies. This is practical in evaluating financial flexibility and solvency, facilitating optimal liquidity, and increasing business profitability and performance. Furthermore, learning about such items is helpful to investors, creditors, and analysts to make optimal decisions. IntroductionWorking capital management in companies plays a key role in their growth and survival. This business process also helps increase the value of such entities and maximize their shareholder wealth, thereby maintaining competitive conditions and optimal performance. Representing the management of current resources and expenses in a company, working capital management has two components, namely, the management of current assets and liabilities, whose balance is of utmost importance. Decisions made about each one can affect the other (Jahan Khani & Talebi, 1999). On the word of Nath et al. (2010), working capital items have a critical role in the operational efficiency (OE) of a company as well as its marketing capability. In this line, Fang et al. (2008) also believe that working capital items have high liquidity, and are directly associated with the operating results and efficiency of a company, so managing cash in the short term is especially relevant for competition in markets. Therefore, the main items in working capital can significantly shape the operating results in a company, including contribution margin, market share, and OE. Against this background, the present study is to identify and explain the accounting variables determining the OE of the companies listed on the Tehran Stock Exchange (TSE), Iran, in light of the working capital items.Materials & MethodsConsidering the type of supervision and the degree of control, this study is categorized as field research, because the variables were investigated in their natural state. With regard to the data collection method, this study is placed into documentary research. Utilizing an applied, descriptive research design, the relationship between the given variables was established via a correlational study. The statistical population comprised the companies listed on the TSE, Iran, and the study samples included 112 cases listed during 2016-2020. The dependent variable was OE, evaluated using data envelopment analysis (DEA), and the independent variables were working capital items and dividend growth rate. Profitability index, company size, financial leverage, and operating cash flow (OCF) were correspondingly deemed as the control variables in the research model. To shed light on the effect of the independent variables on the dependent one, eight hypotheses were initially formulated, and then multivariate linear regression using panel data in a fixed-effects model was implemented to test them. In order to analyze the data and interpret the results, descriptive and inferential statistics were ultimately utilized.FindingsUpon presenting the descriptive statistics and checking the assumptions of the regression as well as determining themost suitable research model, the linear regression equation was estimated using the fixed-effects model, as described in table 1Discussion & ConclusionAs confirmed by the study findings, working capital items can explain the OE of the companies listed on the TSE, Iran. In this respect, the results of testing the main research hypothesis are consistent with the reports by Sun et al. (2020) and Nath et al. (2010). The outcomes of testing the secondary hypotheses also reveal a significant positive relationship between the variables of average period of collection of claims, average debt repayment period, dividend growth ratio, cash holding level, and liquidity ratio and the variable of operational efficiency. Nevertheless, there is a significant negative relationship between the variables of cash conversion cycle and average inventory turnover period and operational efficiency.Considering these results, cash holding level and liquidity ratio have a positive effect on operational efficiency, which supports the findings in Nath et al. (2010). According to Nath et al. (2010), working capital items with high liquidity help improve the OE of a company, indicating its high capability to manage cash in the short term, as a requirement for its competitive presence in markets. The study results also agree with those concluded by Afrifa et al. (2022) that holding more cash facilitates working capital efficiency. Based on the study findings, average inventory turnover period has a negative effect on OE, in harmony with the results in Deloof (2003) that high inventory level declines the profitability and performance of a company. In his opinion, managers can increase the profitability and performance of businesses by reducing inventory levels. In view of the cash conversion cycle in the given companies during the study period here, the relationship between this variable and OE is negative, which is consistent with the results in Abdulla et al. (2017) that companies with higher cash conversion cycle are more efficient in managing their working capital as compared with other entities.From this perspective, managers are suggested to identify the role of working capital items and exploit them in line with the short/long-term goals in companies. This is practical in evaluating financial flexibility and solvency, and facilitates achieving optimal liquidity, and subsequently increasing business profitability and performance. Furthermore, learning about the role of working capital items is of assistance to investors, creditors, and analysts to make optimal decisions. Furthermore, it is possible to carry out the same study in the future with respect to the size and type of industry of the companies listed on the TSE, Iran, and complete a comparative study regarding the companies operating in each industry. Besides, it is recommended to analyze the effect of various working capital strategies on economic added value in a separate study. Investigating the effect of various strategies and components of working capital on stock price and its fluctuations should also be the subject of further research.
Financial audit
اکرم afsay
Abstract
The purpose of this study is to examine the relationship between financial expertise and the experience of the audit committee chairman with auditor selection, audit fees and audit quality. In order to achieve the goal of the research, a sample equal to 99 companies admitted to the Tehran Stock Exchange ...
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The purpose of this study is to examine the relationship between financial expertise and the experience of the audit committee chairman with auditor selection, audit fees and audit quality. In order to achieve the goal of the research, a sample equal to 99 companies admitted to the Tehran Stock Exchange during the period from 2015 to 2023, equivalent to 792 company-years, was analyzed using multiple regression analysis based on combined data. The findings showed that the companies whose heads of the audit committee have financial expertise are more likely to choose the audit organization and audit institutions with quality control A as their independent auditors. Also, according to the findings, the financial expertise of audit committee heads leads to an increase in audit fees and audit quality. However, this study did not identify a significant relationship between the audit committee chairman's experience with auditor selection and audit fees, but a positive and significant relationship between the audit committee chairman's experience on audit quality was identified. The findings of this study contribute to the literature by documenting that financial expertise and experience of audit committee heads are important for improving the audit process and audit quality.
Hassan Zalaghi; Asyieh Ghadami Mashhour
Abstract
Transparency is the core of financial reporting and the transparency of financial reporting is to provide an understanding of the economic facts of business units through financial reports. On the other hand, earnings management is an unrealistic report of a business's economic performance ...
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Transparency is the core of financial reporting and the transparency of financial reporting is to provide an understanding of the economic facts of business units through financial reports. On the other hand, earnings management is an unrealistic report of a business's economic performance that is aimed at misleading somestakeholders or affecting contractual outcomes. Therefore, in the current research, the relationship between real earning management and Accrual Earnings Management with the transparency of accounting information has been studied. The sample includes 112 Firms from listed Firms in Tehran Stock Exchange, which weresurveyed during 2010-2017. To measure real earning management used from model of Roychowdhury (2006) and for measuring the Accrual Earnings Management used from the modified Jones model and to measure the transparency of accounting information used from model of Bart et al.(2009). The results showed that there is meaningful relationship between real earning management and the transparency ofaccounting information, which means that the use of discretion regarding operational, investment and financing decisions, which are important indicators of real earning management, can affect the transparency of financial information.Too results showed that there was no significant relationship between Accrual EarningsManagement and transparency of accounting information.
Hasan Zalghi; Amin Amir Bakhtiarvand
Volume 14, Issue 53 , April 2017, , Pages 173-198
Abstract
In this study, the effect of audit quality on the forecasting accuracy of futureoperating cash flows of firms listed in the Tehran Stock Exchange has beeninvestigated. Audit quality has been measured with auditor size, auditorindustry specialization and auditor tenure. Similar to some previousresearches ...
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In this study, the effect of audit quality on the forecasting accuracy of futureoperating cash flows of firms listed in the Tehran Stock Exchange has beeninvestigated. Audit quality has been measured with auditor size, auditorindustry specialization and auditor tenure. Similar to some previousresearches done in this outline, forecasting accuracy of future operating cashflows have been estimated with using model Barth et al (2001). The resultsof review firms 97 in the years 2007 to 2014 show that size of audit firm andauditor industry specialization have significant positive relationship at theforecasting accuracy of future operating cash flows, and increase forecastingaccuracy. while there is a significant negative relationship betweenforecasting accuracy of future operating cash flows and auditor tenure. Thesefindings suggest that audit quality can influence the quality of accountinginformation and therefore effected over forecasting accuracy of futureoperating cash flows.
yeganeh faghfour maghrebi; seyed hossein sajadi; Hamideh Esnaashari; ali rezaeian
Abstract
Quantitative information by itself provides investors with an incomplete picture of afirm’s economic circumstances. Thus firms also provide qualitative and textualdisclosures in addition to quantitative disclosures which have characteristics such aslanguage sentiment and readability that can have ...
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Quantitative information by itself provides investors with an incomplete picture of afirm’s economic circumstances. Thus firms also provide qualitative and textualdisclosures in addition to quantitative disclosures which have characteristics such aslanguage sentiment and readability that can have impact on investors’ judgment anddecision-making. The goal of this study is to examine whether language sentimentand readability of an earning press release can affect investors’ judgment andwhether this effect is conditional on investors’ information processing style(sophistication). For this purpose a 2 * 2 * 2 between-subject experiment wasconducted with accounting students as participants. ANOVA analysis showed asignificant relationship between investors’ judgment, language sentiment andreadability. Results also indicated that positive language sentiment and lowreadability affect less sophisticated investors who use heuristic informationprocessing style in a positive way and more sophisticated investors who use rationalthinking style in a negative way. Taken together, the results of this study confirmthat there is a need for regulation to ensure protection for unprofessional investorsand also require companies to apply disclosure tone which is in line with firm’soverall performance and increase the readability of qualitative disclosures
Jafar Babajani
Abstract
The ministry of economic affairs and finance with cooperation of supreme audit court, managers, and comptrollers has provided a new public finance bill to be introduced in Islamic parliament of Iran. The bill will be considered as the fifth public finance law since the advent of legislature in Iran if ...
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The ministry of economic affairs and finance with cooperation of supreme audit court, managers, and comptrollers has provided a new public finance bill to be introduced in Islamic parliament of Iran. The bill will be considered as the fifth public finance law since the advent of legislature in Iran if enacted by the parliament. Legislation of laws in Iran such as the mentioned law is usually based on trial and error method in which the previous law forms the basis of revision. Then, the redundant articles are deleted and the necessary new articles which are originated from the weaknesses of previous law are added. Whereas, the present author believes that the public finance law should result from the process of reviewing the same laws in developed countries, extracting the fundamental decrees and customizing them to obtain a proper pattern for preparing the new public finance bill.Since the author’s recommended methodology is not applied in preparing the draft of public finance bill, the author has used a comparative research methodology in this paper to compare key decrees of current public finance act and the new public finance bill. The results reveal the fact that on the one hand, the bill has some similarities and differences with the present act, but on the other hand, it has some capabilities and deficiencies.
Yahya Hasas Yaganeh; Shahram Amouzad
Abstract
Audit firms are subject to market rules, and therefore their profitability depends on the relationship between audit fees and the cost of doing business. The audit market has become highly competitive over the past decades and has grown further behind the current economic crisis. This environment has ...
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Audit firms are subject to market rules, and therefore their profitability depends on the relationship between audit fees and the cost of doing business. The audit market has become highly competitive over the past decades and has grown further behind the current economic crisis. This environment has led to a lot of pressure on the audited clients, and so the pressure exerted by the clients on auditors has also increased. These pressures appear in agreement with audit fees as well as on the authority of the clerk to overshadow the auditor's judgment. The purpose of this study is to investigate the factors affecting the pressure on auditors and their professional (moral) judgments. Pearson correlation, factor analysis, t-student and analysis of variance were used to test the research hypotheses. The statistical population of the study consisted of all persons employed in the audit firms of the member of the public accountants community with a senior senior auditor rank, and the number of samples was estimated using the Cochran formula of 192 people. The results of the findings showed that the size of the auditor and the auditor's experience are inversely related to the pressures of the auditors and have a direct and significant relationship with their professional judgment.
Shekoufeh Nekoueizadeh; Mohsen Dastgir; Saeid Aliahmadi
Abstract
Considering the fact that economic crisis comes along with uncertainty and fluctuations in macroeconomic variables and it causes in a special situation in the economic circumstance of the country and companies activities in that, therefore it can affect the ability and the power of management on the ...
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Considering the fact that economic crisis comes along with uncertainty and fluctuations in macroeconomic variables and it causes in a special situation in the economic circumstance of the country and companies activities in that, therefore it can affect the ability and the power of management on the company’s performance and its value. Also, the quality of auditing and the quality of financial reporting in critical situations can moderate the opportunistic behavior of managers. The purpose of this study was to investigate the effect of economic crisis on the relationship between management power, company value and financial performance considering the moderating effect of the Characteristics of financial reporting on Tehran Stock Exchange companies. In this research, two Characteristics of financial reporting including financial reporting quality and audit quality have been used to investigate ethical characteristics of the company.Accordingly, Using the systematic removal method, the data of 197 listed companies in Tehran Stock Exchange for the years 2006-2017 is analyzed. The results of the study show that the characteristics higher level of audit quality by decreasing the negative impact of the Crisis conditions leads to a positive effect of the power and ability to manage the company's value and financial performance. Also, the characteristics higher level of financial reporting quality, as well as the negative effect of the critical situation, only have a positive effect on the ability and power of management on the value of the company but have no significant effect on the firm's financial performance.
Abstract
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . .. .. . . . . . . . . . . . . . . The purpose of this research is empirical test of idiosyncratic risk pricing in Tehran Stock Exchange during 1378 to 1389. The current research is considered ...
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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . .. .. . . . . . . . . . . . . . . The purpose of this research is empirical test of idiosyncratic risk pricing in Tehran Stock Exchange during 1378 to 1389. The current research is considered as “Ex-post facto” that has been done using “portfolio study approach” and is based on observational data. The statistical sample composed of 11880 firms/season observations from 270 listed companies in Tehran Stock Exchange. Results show that investors expect to compensate (obtain risk premium) for bearing idiosyncratic risk. The performance of momentum portfolios based on idiosyncratic risk always is positive and statistically significant. Furthermore, the results robustness tests confirm that this positive performance is not influenced by thin trading effects, change in idiosyncratic volatility estimation method and weighting scheme of return computation.
Mona sadat Kaboli; Ali Rahmani; Hashem Nikoomaram; Fraydoon RahnamayRoodposhti
Abstract
In response to recent cases involving materially misstated financial information arising from fraudulent financial reporting, stakeholder of entities and standard and regulated authority have increase their focus on strengthening effective factors on manger's unethical behavior.In experimental analyses, ...
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In response to recent cases involving materially misstated financial information arising from fraudulent financial reporting, stakeholder of entities and standard and regulated authority have increase their focus on strengthening effective factors on manger's unethical behavior.In experimental analyses, factors influencing the incidence of fraudulent financial reporting were assessed.We examined the effects of Schwartz’s motivational values and accounting codes of ethics, on whether managers misrepresented financial reports.In this study, the selected sample of 319 financial manager and executives in Tehran Stock Exchange were asked to respond to hypothetical situations involving fraudulent reporting procedures and were analyzed using partial least squares (PLS).The occurrence of fraudulent reporting was found to be high in managers with focus on individualism versus universal ism Schwartz’s motivational value. How ever, separately motivational values and accounting codes of ethics were tested and with interaction of two factors with each other played a significant role in fraudulent financial reporting.
Hossein Etemadi; Ahmad reza Maroufi; Zohreh Mohammadi shad
Abstract
Today, accountants all around the world, use accounting doctorines and share it with others with the idea that what they communicate is nothing but neutral measurement of economic events. What they communicate, however, is based on standards and procedures that bear a specific discourse. In this paper, ...
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Today, accountants all around the world, use accounting doctorines and share it with others with the idea that what they communicate is nothing but neutral measurement of economic events. What they communicate, however, is based on standards and procedures that bear a specific discourse. In this paper, we search for this subtle discourse in order to determine what is actually transmitted to the audience with the seemingly neutral numbers and in this process, the social punishments are replaced by which peculiar discipline. So we take the statemmenf of “Financial Reporting Theoretical Concepts”, known as Iranian Conceptual Framework, as the basis of Iranian accounting standards as a subject for content and discourse analysis. We show that by dissemination of the financialization discourse embedded in the statement, accountants promote unwritten and unspoken thoughts that take the national economy to a state of annihilation through what we call Absenteeism and Illiability
Ghasem Blue; Mohammad Marfou; Arian Ghahremani
Abstract
The purpose of the present study is to explain the effect of accounting information quality on corporate equity cost and to investigate the moderating role of information asymmetry and the simultaneous moderating role of this variable and the comparability of financial statements in this context. The ...
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The purpose of the present study is to explain the effect of accounting information quality on corporate equity cost and to investigate the moderating role of information asymmetry and the simultaneous moderating role of this variable and the comparability of financial statements in this context. The research timeframe for this period is 5 years from the beginning of 2013 until the end of 2017 and the sample includes 91 companies listed in Tehran Stock Exchange. Multivariate regression was used for statistical analysis. The results of the analysis indicate that the quality of accounting information has an adverse effect on equity cost, so that the higher the quality of accounting information, the lower the cost of equity; and vice versa. Also, information asymmetry has a direct relationship with this effect. But the simultaneous impact of comparability of financial statements and information asymmetry on the impact of accounting information quality on equity costs is not confirmed. The results of the first two hypotheses are similar to those of Emof et al. (2018), which examined the effect of accounting information quality on equity cost in the United States, but the third hypothesis suggests that it is inconsistent.
