Financial audit
Bita Mashayekhi; Milad Samavat; Amin Jahangard
Abstract
This study aims to conduct a literature review on internal audit quality literature using bibliometrics methods, including time-trend and impact analysis of studies, journals, authors, institutions, and countries. We also identified Conceptual, Intellectual, and Social structure of this line of research. ...
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This study aims to conduct a literature review on internal audit quality literature using bibliometrics methods, including time-trend and impact analysis of studies, journals, authors, institutions, and countries. We also identified Conceptual, Intellectual, and Social structure of this line of research. To fulfill our purpose, we applied a bibliometrics approach to 92 research papers from 1993-2023, which we acquired from Web of Science (WoS) database.IntroductionA review of the literature in the field of internal audit quality shows the variety of topics in the research conducted in the past years. Therefore, a systematic review of the research is conducted in this field with the intention of creating a deeper understanding of the research on internal audit quality for researchers who intend to study in this field, and drawing some potential future research paths for this field.The main research questions are as follows:1) What is the trend of studies conducted in the field of internal audit quality? (Trend analysis)2) Which are the most influential articles, authors, journals, research institutions, and countries in the field of internal audit quality research? (Impact analysis)3) Which topics form the body of knowledge of internal audit quality research? (Conceptual structure)4) Which topics in the field of internal audit quality have been sufficiently developed and which are still developing and need further investigation? (Conceptual structure)5) What are the cooperation networks between authors, research institutions, and countries in conducting internal audit quality research? (Intellectual and social structure)Literature Review2.1. Determinants of internal audit qualityBased on previous research, the personal characteristics of the internal auditors (Erasmus and Coetzee, 2018), the support and power of senior management (Jiang et al., 2018), Organizational independence and commitment, the time pressure imposed on the internal auditor (Samagaio and Felício, 2022), the use of information technology by internal auditors (Deribe and Regasa, 2014), the quality of the audit committee's performance and its participation in internal audit planning and reporting (Abdullah, 2018), the size of the internal audit (Erasmus and Coetzee, 2018), and the uncertainty and complexity of the company's environment (Jiang et al., 2018) affect the internal audit quality.2.1. Concequences of internal audit qualityAccording to previous research, the high-quality internal audit can affect the quality of corporate governance (Lenz and Hahn, 2015), internal controls quality (IIA, 2015), earnings management and financial reporting quality (Prawitt et al., 2009), external audit fee (Mat Zail et al., 2015), and external audit delay (Abbott et al., 2012b).MethodologyIn this paper, the bibliometric analysis is used in order to examine the trend and impact analysis, as well as analyze the conceptual, intellectual, and social structure of the internal audit quality research field. Also, in order to implement bibliometric methods, the Bibliometrix package is used in R.ResultsOur findings indicate an increasing trend in the number of research studies on internal audit quality literature. We also document that Prawitt et al. (2009) is the most cited paper; David A. Wood from Brigham Young University is the most influential author; Accounting Review is the most influential journal; Managerial Auditing Journal is the most productive journal; Brigham Young University is the most prolific institution; and the USA is the most influential country in this research field. "Corporate Governance", "Internal Controls", "Audit Effectiveness", and "Audit Competency" are among the dynamic topics that are well-developed in internal audit quality literature. "Earnings Management" and "Risk Management" are emerging topics, and we predict an increase in the number of studies on them in the years to come. We also argue that although "Accountability" is a critical topic in internal audit quality literature, it can still be developed further in future research.DiscussionThe results indicate the concepts of "corporate governance", "audit committees", "earnings management", "internal controls", and "financial reporting quality" are the most frequent keywords in this field. Repetition of these concepts in the articles of this field can emphasize the role of high-quality internal audit in a suitable structure of corporate governance, indicating its role in strengthening internal controls and preventing managers’ misconduct, and ultimately increasing the transparency and quality of financial reporting. Also, "earnings management" and "risk management" are hot topics and of particular interest to researchers and academics. It is expected that future research will focus on these two topics. Also, the analysis of the thematic map of keywords in the research field of internal audit quality shows the important role of "accountability" in improving the quality of internal audit and its potential for development and growth in future research. The global map of countries' cooperation in the field of internal audit quality shows that the most scientific cooperation of countries in the field of internal audit quality research is dedicated to some developing countries. It seems that the quality of internal audit in these countries has a double importance in the eyes of researchers and professionals.ConclusionThe findings of this paper can provide researchers with an insight to conduct studies on the quality of internal audit in the future. This research has several contributions. This research is the first attempt to use bibliometric methods in order to review the internal audit quality literature. The results of this research not only provide a comprehensive picture of the research in this field but also help in the direction of future studies by introducing the hot topics in the field. Also, researchers can refer to the results of this research in choosing co-authors or research institutions to conduct joint research in the field of internal audit quality.The professionals can use our results to improve the quality of internal audits by knowing the related key issues and the researchers and sources who have produced more reliable documents.
Financial Accounting
Mohamad Marfo; Mohammad javad Salimi; Iman Raeesi Vanani; Mojtaba Alifamian
Abstract
Purpose: The rapid development of technology and extensive environmental changes have accelerated economic growth, and the increasing competition among enterprises has restricted access to profit and increased the probability of enterprises ' financial distress. Due to the effects of high costs of financial ...
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Purpose: The rapid development of technology and extensive environmental changes have accelerated economic growth, and the increasing competition among enterprises has restricted access to profit and increased the probability of enterprises ' financial distress. Due to the effects of high costs of financial distress, its prediction has attracted the attention of researchers since the beginning. Therefore, this paper aims at a bibliometric analysis of financial distress research in the accounting, management and economic areas. Design/methodology/approach: The research method is based on a three-step protocol of dataset setting, dataset refining, and analyzing the data. First, the published articles in the financial distress field were collected from the Web of Science database. Second, the document information was refined, and 801 articles were chosen for literature review in this area. Finally, we used the bibliometric analysis toolbox to investigate the documents. Also, bibliometric analysis in this research was conducted using VOSviewer software. Findings: The findings of this research indicate the existence of six main streams of research (methods of predicting financial distress, predictors of financial distress, restructuring strategy, corporate governance, bank bankruptcy and earnings management) in the field of financial distress. Additionally, the results highlight the importance of social responsibility of the company, also demonstrate that improvements in technology, particularly the use of artificial intelligence tools, have enhanced predicting accuracy. IntroductionIn the life cycle of any company, while there are many opportunities for growth, prosperity, and success, there are also situations where the company may face decline, crisis, and failure. Theoretically, it is assumed that business companies operate indefinitely with the aim of making a profit.However, in the modern era of the global economy, companies not only become significantly more established but also face financial distress more frequently than in the past. In other words, due to globalization and the integration of national economies, the incidence of business failures and bankruptcies has risen. Financial failure is not an instantaneous event but a dynamic and generally lengthy process that affects the company's capital structure, investment policies, and performance. Therefore, identifying the factors of financial distress enables the prediction of an enterprise's financial distress.Identifying the factors influencing the financial distress of companies, firstly, enables the taking of appropriate actions by providing necessary warnings. Secondly, investors can distinguish favorable investment opportunities from unfavorable ones and invest their resources in situations and places where they are less likely to lose money.Given the importance and effects of financial distress and the high rate of failure of current businesses, a literature analysis in this area appears necessary. A review of the literature in the field of financial distress uncovers a multitude and variety of topics in past research. Thus, it is crucial to conduct a systematic review of past research to understand its intellectual structure. Moreover, the keywords used in past research represent the field’s main ideas and topics. Therefore, this study is going to draw the intellectual structure of financial distress research through quantitative techniques of co-word analysis, citation, co-citation, bibliometric, and co-authorship analysis. Research Question(s)This research, employing bibliometric analysis, reviewed the literature on financial distress in the fields of accounting, management, and economics. It also analyzed the content of articles in this field to answer the following questions:RQ1. What is the trend of publications in financial distress research?RQ2. What is the citation structure in the financial distress research?RQ3. What are the fundamental streams of financial distress research?RQ4. What are the emerging themes in the financial distress research? MethodologyThe research method is based on a three-step protocol: dataset setting, dataset refining, and analyzing the data. First, the published articles in the financial distress field were collected from the Web of Science database. Second, the document information was refined, and 801 articles were chosen for literature review in this area. Finally, we used the bibliometric analysis toolbox to investigate the documents. Additionally, bibliometric analysis in this research was conducted using VOSviewer software. ResultsOur findings indicate an increasing trend in the number of research studies on financial distress literature over the past six years, with approximately 54% of articles published during this period.We also document that "In Search of Distress Risk" is the most cited paper, receiving 881 citations in the Web of Science database; "Altman" is identified as the most influential author; and the USA emerges as the most influential country in this research field. This predominance can largely be attributed to the fact that most journals indexed in the Web of Science in the fields of accounting and finance are associated with the United States. Consequently, it is evident that the publication of articles by universities and researchers based in this country is more prevalent than in other countries worldwide. The findings of this research reveal the existence of six main streams of research: methods of predicting financial distress, predictors of financial distress, restructuring strategy, corporate governance, bank bankruptcy, and earnings management in the field of financial distress. Additionally, the results of the research not only underscore the importance of a company’s social responsibility but also highlight how technological advancements, particularly the use of artificial intelligence tools, have enhanced the accuracy of financial distress predictions. Discussion and ConclusionIn this study, first, the evolution of literature in this field has been reviewed through bibliometric analysis over the last four decades. Secondly, from a performance perspective, the indicators related to the article, citation indicators, and combined article and citation indicators have been examined. Additionally, scientific mapping of articles in this field has been conducted through citation analysis, co-citation analysis, co-authorship analysis, and co-word analysis. Finally, clustering and content analysis of the articles in this field have been performed.First, performance analysis was conducted to answer the first two research questions. The research findings confirm that during the last four decades, the literature on financial distress has significantly grown. Examining the growth trend of the articles’ number indicates the effect of changes in the business environment on financial distress. Thus, this trend shows an increase in the number of articles from 2010 onwards, the reason for which is attributed to the financial crisis of 2008, which caused many companies to face financial distress due to the impossibility of financing. Additionally, the trend of published articles shows a significant increase in articles during the period of COVID-19 and after (2020, 2022, 2023). The limitation caused by this public crisis (COVID-19) has increased the possibility of financial distress for companies, and many researchers have investigated this issue. Secondly, to examine the third question of the research, co-citation and bibliographic coupling analysis have been used. As indicated in the mentioned findings section, the studies conducted can be classified into three clusters: predicting financial distress, which is mainly based on accounting data criteria; a cluster of default risk and systematic risk, which provides information about the prospects of the company and the volatility of assets; and finally, the cluster of restructuring strategies, which includes studies that seek to exit this cycle of financial distress using these strategies. The Bibliographic coupling analysis indicates that six main streams of research (financial distress prediction methods, financial distress prediction factors, restructuring strategy, corporate governance, bankruptcy of banks, and earnings management) exist in the financial distress field.Thirdly, the co-word analysis was conducted to answer the fourth question of the research. The increase in the frequency of the words ‘machine learning’ and ‘social responsibility of the company’ in recent years indicates the development of advanced techniques and models in data mining. This development has become so widespread that a large number of research papers are published every year in many fields, including finance, using techniques and algorithms of artificial intelligence and machine learning. Additionally, regarding social responsibility, this trend suggests the primary purpose of enterprises has shifted from profit maximization to increasing shareholder wealth and protecting the interests of other stakeholders, including society and the environment. Therefore, it is expected that future studies will focus increasingly on social responsibility and sustainability.
Mohamad Namazi; gholamreza Rezaie
Volume 11, Issue 44 , March 2015, , Pages 37-69
Abstract
The purpose of this research is to study the effects of the accruals quality and the information relevance on the agency costs for the companies listed in Tehran Stock Exchange (TSE). Hence, an attempt will be made to answer the following question: “Is there a significant relationship between the ...
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The purpose of this research is to study the effects of the accruals quality and the information relevance on the agency costs for the companies listed in Tehran Stock Exchange (TSE). Hence, an attempt will be made to answer the following question: “Is there a significant relationship between the accruals quality and the information relevance and agency costs?”. To find the answer, this research utilizes the operating expenses to sales ratios, asset turnover ratios, and Q-tobin’s ratios were employed as proxies for the agency costs. The statistical population of the study consists of 67 companies of the TSE during 2003 to 2010; and the multivariate regression is used. The results suggest that there is a reverse relationship between accruals quality, accruals quality that is adjusted according to performance and information relevance, and the agency costs criteria (i.e., operating expenses to sales ratios, asset turnover ratios, and Q-tobin’s ratios).
Ahmad Ahmadpoor; asoomeh hahsavari
Volume 11, Issue 41 , April 2014, , Pages 37-58
Abstract
This study investigates how management Authority of bankrupt firms performs in reporting future profitability and earnings quality effect in Tehran Stock Exchange during 1385-1390. Discretionary accrual is considered as measure of earnings management. Also in this study, it is investigated the effect ...
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This study investigates how management Authority of bankrupt firms performs in reporting future profitability and earnings quality effect in Tehran Stock Exchange during 1385-1390. Discretionary accrual is considered as measure of earnings management. Also in this study, it is investigated the effect of accounting-based earnings attributes on future profitability separately: accruals quality, earnings persistence, earnings predictability, and earnings smoothness. The results of estimating unbalanced panel data technique for 55 firms subjected to bankruptcy of Altman's model show that the Bankrupt companies tend to be opportunistic earnings management. We also find that earnings management performs better than earnings quality in predicting future profitability.
Mohsen Khoshtinat; Fereshteh Yoosefi
Volume 5, Issue 20 , January 2008, , Pages 37-59
Abstract
This paper studies the relationship between information asymmetry and accounting conservatism in financial statements. Information asymmetry between informed and uninformed equity investors creates an agency cost that ...
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This paper studies the relationship between information asymmetry and accounting conservatism in financial statements. Information asymmetry between informed and uninformed equity investors creates an agency cost that increases the equilibrium return on the firm's equity. This effect gives parties to the firm an incentive to generate a mechanism that reduces information asymmetry. In the other hands Conservatism reduces the manager's incentives and ability to manipulate accounting numbers and then reduces the agency costs.
Our empirical tests express that information asymmetry among equity investors is significantly positively related to conservatism. Further our tests confirm that changes in information asymmetry between equity investors lead changes in conservatism but conservatism doesn't lead to information asymmetry.
This result rejects the FASB proposition that conservatism produces information asymmetry among investors.
A. Badri; M. Imanyfar
Volume 8, Issue 30 , July 2010, , Pages 37-58
Abstract
Empirical studies of capital structure are fraught with difficulties. As mentioned by Harris and Raviv (1991), the interpretation of results of these studies should consider the difficulties involved in measuring both leverage and the explanatory variables. In other words, resulting from empirical studies ...
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Empirical studies of capital structure are fraught with difficulties. As mentioned by Harris and Raviv (1991), the interpretation of results of these studies should consider the difficulties involved in measuring both leverage and the explanatory variables. In other words, resulting from empirical studies of capital structure is "definitional-dependent of leverage" and on the other hand, may be affected by the imperfect measurement of the study made by researcher.
In this study, ten measures have been used to define financial leverage for the first time (in Iran). The results show firstly, some firm characteristics are associated with financial leverage. Level of leverage is negatively correlated with profitability and growth opportunities, and positively related to size variable, but tangibility is not related
to leverage; secondly, the results are affected by definition of leverage. In other words, the results of the first part are affected by ten measures of financial leverage measurement. Especially, the decompositional analysis shows current debt and its components have an important effect on the results of the study. This finding challenges traditional measurements of leverage.
omid purhaidari
Gholamreza karami; Omid Akhoundi
Abstract
The main objective of this paper is to evaluate the effect of the corporate life cycle stages on the cost of equity of firms listed on the Tehran Stock Exchange. In this study we used Dickinson's Model (2011) to determine the corporate life cycle stages and Gordon Model to calculate cost of equity. In ...
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The main objective of this paper is to evaluate the effect of the corporate life cycle stages on the cost of equity of firms listed on the Tehran Stock Exchange. In this study we used Dickinson's Model (2011) to determine the corporate life cycle stages and Gordon Model to calculate cost of equity. In this study, we first took samples using the cash flow statement data (including cash flow from operating activities, cash flow from investing activities and cash flow from finance activities) and separated the firms in the growth stage, maturity stage and decline stage, then, using multivariate regression analysis and mean comparison tests, hypotheses were studied and tested. The results of 110 firms (990 company - year) from 2006 to 2014 shows that the firms, cost of equity in different stages of the life cycle (growth, maturity, decline) are significantly different. The results also show that in the decline stage the cost of equity is at the highest level and in the maturity stage it is at the lowest level.
Accounting and various aspects of finance
Mohammad Namazi; Amin Nazemi; Navid Reza Namazi; Esmail Moazzeni
Abstract
In this research, operational budgeting was investigated in the form of four groups of contextual factors, structural factors, human factors and other factors on operational and research budgeting with analytical model, balanced evaluation method. The statistical population of this study is all executive ...
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In this research, operational budgeting was investigated in the form of four groups of contextual factors, structural factors, human factors and other factors on operational and research budgeting with analytical model, balanced evaluation method. The statistical population of this study is all executive bodies subject to Article (5) of the Civil Service Management Law. Data were obtained using 182 questionnaires and analyzed using structural equation method and Smart PLS software. In this model, the balanced evaluation method was adapted to the three-part cycle of performance management and a three-part model of performance management, based on balanced measurement, is obtained. The results showed that the identified structures in operational budgeting have a positive and significant effect on the performance of executive agencies. The structures of “structural factors”, “human factors” and “other factors affecting the implementation of operational budgeting (including personality, acceptance and ability)” have a positive and significant effect on performance, but the structure of “underlying factors” has a significant effect. It does not affect the performance of executive agencies.IntroductionIn traditional budgeting, the goals and emphasis are based solely on financial instruments and accounting of receipts and payments of the public sector (Mio et al., 2022). Also, in the traditional method of budgeting, the ability to plan long-term is limited and the possibility of achieving operations and budget monitoring is very weak.The problem that exists is that organizations pay less attention to budgeting in a new way and as a result, it is not used seriously in strategic decisions. Therefore, the effect of the operational budgeting method on the performance of organizations is not clear (Park & Jang, 2022). On the other hand, despite the sensitivity of the budget and the importance of its economic allocation, this issue has not been seriously considered yet. Therefore, it is necessary to study, discuss and review operational budgeting in organizations.Research QuestionsDespite the different emphasis and requirements of the country's development programs on the implementation of operational budgeting, the following questions are raised:What is the operational budgeting mechanism? What factors, including contextual, structural, human and other factors, are effective on the implementation of operational budgeting? What kind of budgeting model do Iran's executive bodies use? What are the important and influential factors related to operational budgeting? What are the obstacles and problems of operational budgeting in Iran's executive bodies? How to solve the current operational budgeting obstacles and problems?Research hypothesesBased on the theoretical foundations of operational budgeting as well as balanced evaluation and research history, the following hypotheses are presented:The main hypothesis: Operational budgeting variables are effective on the performance of Iran's executive bodies (using the balanced evaluation technique). Sub-hypotheses1) Structural factors in the establishment of operational budgeting are effective on the performance of Iran's executive bodies (using the balanced evaluation technique).2) Background factors in the establishment of operational budgeting are effective on the performance of Iran's executive bodies (using the balanced evaluation technique).3) Human factors in the establishment of operational budgeting are effective on the performance of Iran's executive bodies (using the balanced evaluation technique).4) Other effective factors in the establishment of operational budgeting (including personality factors, acceptance and ability) are effective on the performance of Iran's executive bodies (using the balanced evaluation technique).Literature ReviewThe theoretical foundations of operational budgeting are based on agency theory (Arief, (2020)) and organizational performance improvement (Derfuss, (2016)). In operational budgeting, instead of being based on cost materials, budget information is based on activities, and the results of performance measurement are provided with performance reports. The design and implementation of operational budgeting in any organization is based on three important factors: “planning”, “costing” and “organizational performance evaluation”. Activity-based costing (ABC) is the heart of operational budgeting and the main pillar in budget calculations (Azer and Khadivar, 2013), because activity-based costing is much more suitable for planning and control than traditional methods and provides more accurate information in this field. makes (Namazi, 1998 and 1999).MethodologyThis research is among the few researches that uses the scientific method of construction and experimental proof and is carried out based on pre-determined hypotheses and research plans. (Namazi, 2003). The method of data collection is a questionnaire. The information obtained from the measurement of the variables for the purpose of research tests was used from structural equations and the information was analyzed using Smart PLS version 2 and SPSS version 25 software.ResultsThe value of the T statistic and its statistical significance for the first main hypothesis and all balanced evaluation factors at the 95% confidence level shows as follows:The main hypothesis test: The structures identified in operational budgeting have a positive and significant effect on the performance of executive bodies.The first sub-hypothesis: The structures identified in the operational budgeting structural factors have a positive and significant effect on the performance of executive bodies.The second sub-hypothesis: The strength of the model and the background factors of operational budgeting do not have a significant effect on the performance of executive bodies.The third sub-hypothesis: The structures identified in human factors of operational budgeting have a positive and significant effect on the performance of executive bodies.The fourth sub-hypothesis: The structures identified in other effective factors in operational budgeting have a positive and significant effect on the performance of executive.DiscussionThe purpose of this study was to expand the theoretical foundations and provide empirical evidence in the field of operational budgeting in Iran. This development was done by presenting a conceptual model, explaining the organization's strategy and presenting 5 balanced evaluation criteria and testing related hypotheses. The findings of the study confirmed the theoretical foundations of operational budgeting and balanced evaluation. The results of the main hypothesis test of the research showed that the structures identified in operational budgeting have a positive and significant effect on the performance of executive bodies.ConclusionThe findings of the first, third and fourth sub-hypothesis showed that the structures identified in the structural factors, human factors and other operating budgeting factors of operational budgeting, have a positive and significant effect on the performance of executive bodies.The results of the second sub-hypothesis test showed that the variable of operational budgeting background factors does not have a statistically significant effect on the performance of executive bodies. The reason for this can be related to the governmental nature of executive bodies, non-compliance with the requirement to establish operational budgeting and cultural factors such as the resistance of employees and managers to new changes in the body.
Saber Sheri; Elham Amiri
Volume 9, Issue 33 , April 2011, , Pages 39-57
Abstract
In Recent corporate scandals, one of the recurring areas of concern is related party transactions. Concern about related party transactions has increased as a result of at least two high profile bankruptcies: Enron and Adelphia. The key reason of their collapse has been attributable at least in part ...
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In Recent corporate scandals, one of the recurring areas of concern is related party transactions. Concern about related party transactions has increased as a result of at least two high profile bankruptcies: Enron and Adelphia. The key reason of their collapse has been attributable at least in part to extensive purposefully use of undisclosed or “under-disclosed” transactions. In this research, the adequacy of disclosure of related party transactions is investigated by means of a checklist prepared according to Iranian accounting standard No.12.
Research is performed over the years of 2006 to 2010 among Tehran stock exchange listed companies. According to accounting standard No.12, 14 disclosure requirements are set out and divided into two groups: 5 items are classified as general disclosure items and others are classified as other disclosure items. Then, mean disclosure is calculated and compared with the 50-percent level of disclosure included in Doing Business Reports.
The results show that companies disclose 46 percent of general disclosure items and 58 percent to 62 percent of other disclosure items. Finally, the disclosure level of each disclosure requirement is determined. The results suggest deficiency in compliance with accounting standard No.12.
Rahmat Allah Houshmand Zaferanie; Omid Pourheydari
Volume 12, Issue 45 , April 2015, , Pages 39-58
Abstract
The purpose of this study is investigation of the type and information content of accounting adjustments of Firms Listed in the Tehran Stock Exchange (TSE). In this regard, in order to measure the information content of accounting adjustments, the mean cumulative abnormal returns before and after the ...
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The purpose of this study is investigation of the type and information content of accounting adjustments of Firms Listed in the Tehran Stock Exchange (TSE). In this regard, in order to measure the information content of accounting adjustments, the mean cumulative abnormal returns before and after the information has been released. The data used, has been extracted from firms listed in the Tehran Stock Exchange (TSE) in the period 1380-1389. A paired comparison test is used for testing of hypotheses and data analyses. The results of the present study showed that there accountings adjustments have been information content to capital markets and the market shows negative reaction to the accounting adjustments. Also, results showed that the Iran capital market shows a negative reaction to accounting adjustment of errors kinds accounting, income and costs transfers; So that the difference in average abnormal returns for these adjustments were %3/41, %3/44 and %4/52. In addition, the results showed that the cumulative abnormal returns before and after the publication of information on the accounting adjustment of type positive accounting errors, there is not a significant correlation, Therefore, we cannot determine that the market reacts to such adjustments or not. In other words, the capital market show not is interpreting reaction to accounting adjustments of positive accounting errors.
G Babajani; D Foroghi
Volume 1, Issue 2 , July 2003, , Pages 39-60
Abstract
Social Accounting and corporate social reporting nowadays are considered as one of the important approaches of accounting. In developed and some less developed countries, several studies have been made in relation with this aspect of accounting. In our country, Iran, no scientific study related to corporate ...
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Social Accounting and corporate social reporting nowadays are considered as one of the important approaches of accounting. In developed and some less developed countries, several studies have been made in relation with this aspect of accounting. In our country, Iran, no scientific study related to corporate social reporting in order to establish conceptual framework of this part of accounting have been done so far. This research is an attempt to obtain those mentioned goals. In this research, according to results of Delphi survey, eight important and major factors were recognized as acceptable criteria for promotion of level of social accountability of Iranian enterprises accounting and financial reporting system. Comparing accepted criteria with characteristics of Iranian enterprises accounting and financial reporting system by Delphi group, determined that the above mentioned system lacks expected capability for social accountability.
Gholamhossein Asadi; Mohammd Reza Hamidi Zadeh; Asghar Soltani
Volume 4, Issue 14 , July 2006, , Pages 39-71
Abstract
Financial markets, especially capital markets are accounted as the most important instrument of equipment and financial resource allocation, but whenever wide- spread deviation and deranges occur in this market, allocation and equipment of financial resources faces serious difficulties in the country.
One ...
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Financial markets, especially capital markets are accounted as the most important instrument of equipment and financial resource allocation, but whenever wide- spread deviation and deranges occur in this market, allocation and equipment of financial resources faces serious difficulties in the country.
One of the destructive and annihilating factors of capital market is forming stock bursting bubble price, therefore, considering strategic, financial and economic importance of this market, is one of the important theoretical issues in economic literature and finance management of economical and statistical simulation in recognizing and evaluating the existence of bubble price in stock exchange.
Research methodology of this study is from descriptive analytical type. In this research to study the presence of bubble price in Tehran Stock Exchange, during the financial period 1991-2005, 74 active companies which have been a member of Tehran Stock Exchange continually and persistently during the above -mentioned course were elected, and utilizing from cointegration econometric test method, the afore-said companies were tested.
Results of the tests showed that with a confidence level of 95%, about 52% of the above-said companies have had stock price bubble, and in confidence level of 90% about 45% of companies have stock price bubble. With regard to the above-mentioned results, the hypothesis of existence stock price bubble in Tehran Stock Exchange during the periods 1991-2005 in the studied companies are confirmed in the expecting statistical level.
Meanwhile, declining the investigation period to finance periods of 1991- 2004, quantity of stock price bubble companies have been increased in 95% and 90% confidence level. It means that in confidence level of 95%, 62% of selected companies were bubble ones, and in 90% confidence level, 52/7% of the companies have stock price bubble.
Analyzing statistical tests showed that no meaningful statistical relation, between stock price bubble and size of the company has existed in 95% confidence level and, as well, statistical tests reveals that no meaningful statistical relation has existed between stock price bubble and type of industry.
Gh. Kordestanim Kordestani; M. Akbari
Volume 8, Issue 29 , April 2010, , Pages 39-64
Abstract
Fama and French (1992) observe that book-to-price (B/P) ratios are positively correlated with subsequent stock returns, a relation that has come to be known as the book-to-price effect and Penman, Richardson, and Tuna (2007) explains that The B/P ratio can be decomposed into an enterprise ...
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Fama and French (1992) observe that book-to-price (B/P) ratios are positively correlated with subsequent stock returns, a relation that has come to be known as the book-to-price effect and Penman, Richardson, and Tuna (2007) explains that The B/P ratio can be decomposed into an enterprise book-to-price (that pertains to operations and potentially reflects operating risk) and a leverage component (that reflects financing risk). Also, this paper is decomposed the B/P ratio into operating (NOA/PNOA) and leverage
(ND/P) components and examined the components of book-to-price effect in stock returns with using annual cross-sectional that explains both the components effect. The final sample used in this analysis consists of 1,411 firm-years (225 companies) for the years 1998-2007.
The empirical analysis shows that the enterprise book-to-price ratio is positively (not significantly) related to subsequent stock returns but, the leverage component of B/P is negatively associated with future stock returns (excluding firm-year observations with NOA/PNOA ≥1). Further, investigation shows that the beta is positively related to subsequent stock returns but, the size is negatively associated with future stock returns that both higher than leverage component of B/P.
saber sheri
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Financial Accounting
mandana taheri; Mahtab Jafari
Abstract
Investor Sentiment often stem from held-up beliefs or information unrelated to stock value and can lead to extreme reactions or low reactions to good or bad news in stock valuation. In this study, the effect of two important policies of Earning sharing and debt policy in the company that can be investigated ...
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Investor Sentiment often stem from held-up beliefs or information unrelated to stock value and can lead to extreme reactions or low reactions to good or bad news in stock valuation. In this study, the effect of two important policies of Earning sharing and debt policy in the company that can be investigated on the behavior and inclinations of investors and then the Moderating effect of management Entrenchment on the relationship. To achieve the purpose of the research, four hypotheses were developed and data collected from 163 companies listed on the Tehran Stock Exchange during the years 2011 to 2021 were tested through regression models. The findings of this study showed that dividend policy increases investors' Sentiment but debt policy decreases investors' Sentiment. Management Entrenchment strengthens the positive relationship between dividend policy and investor sentiment. Therefore, during the dividend policy, the managers are of the shareholders' goals and want a higher dividend payment ratio. Management Entrenchment also reinforces the negative relationship between debt policy and investor sentiment. Therefore, risk-averse managers tend to use less debt, which is also a favorite of investors; because they invest in companies that have the least debt and their capital structure shows the importance of equity.
Yahya Hassas Yeganeh
Volume 1, Issue 1 , April 2003, , Pages 41-60
Abstract
On the basis of "Property Right" Theory, a company is considered as a small group of written or unwritten, formal or informal agreements between beneficiaries and their links: and it is supposed that each person follows his interests and a conflict of interest exists among them. The information inserted ...
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On the basis of "Property Right" Theory, a company is considered as a small group of written or unwritten, formal or informal agreements between beneficiaries and their links: and it is supposed that each person follows his interests and a conflict of interest exists among them. The information inserted in financial report is used in the process of drafting contracts between persons and company. For loan contracts by using ratios, such as the ratio of debt to owners' equity limitations are imposed on managers in transferring wealth from loaners to shareholders. Using accounting income in bonus schemes in order to decrease the conflict of interest between shareholders and management, and in order to prevent managers from leaving is amongst management responsibilities. Finally, using accounting information in political processes such as tax determination, pricing of goods and services, economic decision makings, etc. are samples of accounting information used by loaners, owners and governments. Wealth of persons is also affected by the accounting information prepared by managers. In spite of conflict of interest and effect of accounting information on wealth of mentioned beneficiaries, it is necessary to choose independent auditors for monitoring and attesting this information.
Independent auditors, who are chosen in shareholders general meetings, impartially make a professional comment, by auditing vouchers, documents and evidences supporting financial statements. Independent auditors report accredit accounting information which from the basis of decision makings of beneficiaries.
Researches, done in other countries, show that projected cases in independent auditors reports and specially the explanatory paragraph or paragraphs inserted, are used for company's general meeting decision making in order to decide on adjustments, profit division, managers bonus, etc. Furthermore, mentioned accounting reports are used by government, politicians, stock exchange, credit institutions and banks for different decision makings.
The purpose of this research is to find the answer to the question: "What is the lack of auditors reports effect on company's general meetings decision making and governmental organizations, like ministry of economic and finance, stock exchange and banks caused by?" In order to find the answer to the above question, the research is compiled in the form of seven research hypotheses.
In this research, 46 companies accepted in stock exchange in the period of years 1994 to 1996, are studied and variables extracted from documented evidence are subjected to the research hypotheses.
Conclusion of the research shows that in spite of presence of major shareholders and increasing of share percentage, substantive separation of ownership from management has not been achieved. The lack of substantive separation of ownership from management, lack or weakness of conflict of interest between owner and/or manager and closeness (direct access) of owner to financial information and in some cases support and restrictions of business law have effect on how independent auditor's reports are used in company general meeting decision making. Lack of related laws and provisions cause the manner in which independent auditors report effect decision making of governmental institutions and banks.
Finally, the researcher, on the basis of performed studies and conclusions of this research, has made suggestions on this topic and recommended subjects for future researches.
Seyyed Morteza Mortazavi; Javad Shekarkhah; Jafar Babajani
Abstract
A system of effective internal controls is a foundation for the safe and sound operation of banks and helps management to safeguard bank's resources and interests. Since improving performance of internal control system requires recognizing its current status, in this study, an attempt has been made to ...
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A system of effective internal controls is a foundation for the safe and sound operation of banks and helps management to safeguard bank's resources and interests. Since improving performance of internal control system requires recognizing its current status, in this study, an attempt has been made to evaluate the current status of establishment of internal control system in Iranian banks. For this purpose, through the designed questionnaire, experts have been asked to evaluate the current status of effective indicators in establishing internal control system of banks, taking into account the importance of these indicators. Received answers were analyzed using fuzzy delphi method, fuzzy gap analysis, importance-performance analysis and paired sample test. According to experts, the current status of all effective indicators in the establishment of the internal control system of banks was assessed as unfavorable. Findings from fuzzy gap analysis also indicate that except for 3 indicators, there is a significant gap between the current status (what is) and the desired status (what should be) of indicators. Also, according to the findings of importance-performance analysis, out of 119 indicators studied, 113 indicators do not have acceptable performance despite their high importance. In addition, based on the results of the paired sample test, it can be concluded that there is a significant gap between current status and desired status of effective indicators in establishing the five dimensions of the internal control system of banks: control environment, risk assessment, control activities, information and communication and monitoring activities.
Financial Accounting
Seyed Hosein Sajadi; rahim bonabi ghadim
Abstract
Today, information competition space, as an external importance mechanism, affects the company's management system and stable performance and government ownership in both complementary and destructive aspects can affect this impact. The purpose of this study is to investigate the effect of government ...
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Today, information competition space, as an external importance mechanism, affects the company's management system and stable performance and government ownership in both complementary and destructive aspects can affect this impact. The purpose of this study is to investigate the effect of government ownership on the relationship between information competition and Earning persistenceof companies listed on the Tehran Stock Exchange.The statistical sample of the research includes 103 companies listed on the Tehran Stock Exchange for the period 2013 to 2020. In terms of purpose, the present study is an applied research using a post-event approach. For panel data, fixed-effect and random-effect models were used to estimate the research model using Eviews-8 software. The research results showed that information competition based on political relations and centralized institutional ownership increases Earning persistence and the interactive effect of government ownership with information competition further increases Earning persistence. That is, Government ownership and information competition are two complementary factors in achieving the goals of stakeholders.
Gholamhossein Mahdavi; Navid Reza Namazi
Abstract
Auditing quality has special importance for financial statement’s users,managers, and auditors. The aim of this study is to model the relationshipamong auditing quality factors and investigating the effect of mutualrelationship among its related variables. For this purpose, 101 firms listed inTehran ...
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Auditing quality has special importance for financial statement’s users,managers, and auditors. The aim of this study is to model the relationshipamong auditing quality factors and investigating the effect of mutualrelationship among its related variables. For this purpose, 101 firms listed inTehran Stock Exchange (TSE) were selected for a period of 11 years (2004to 2015). The research method is based on the cause and effect model insystem dynamics. The data was collected using financial statements andRahavard Novin databases. The test of normality, unit root test, correlationand hypothesis testing (multiple regression, partial regression, ARCHfunctions as required) was applied by SPSS version 23 and Eviews version9. The results showed that Standards Compliance and Professionalism, AuditFees, Auditor firm Size, Auditor’s Reputation, Number of Paragraphs inAudit Report, Percentage of misrepresentations and noncompliance, AuditOpinion Type, Delay in the Audit Report, Auditor’s Tenure, and Auditor'sExpertise and Industry Knowledge have mutual effects on each other. Thismodel is newfound in auditing literature of Iran. It is also a practical andaccurate auditing quality model useful for stakeholders in decision making.
Accounting and various aspects of finance
AliAkbar Javan; jafar babajani; mohamad marfo; Farokh Barzideh
Abstract
In this study, by using the Fuzzy Delphi research methodology and getting the expert opinions, it was tried to identify indicators for improving audit quality approved by experts in order to design a suitable model for the Economy of IRAN by utilizing a confirmatory factor analysis model. Also in this ...
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In this study, by using the Fuzzy Delphi research methodology and getting the expert opinions, it was tried to identify indicators for improving audit quality approved by experts in order to design a suitable model for the Economy of IRAN by utilizing a confirmatory factor analysis model. Also in this research, the gap between current and desired situation of audit quality indicators in IRAN is investigated. Finally, the dimensions of audit quality are ranked in terms of importance. For this purpose, following the International Auditing and Assurance Standards Board, 60 indicators were identified. These indicators were classified in five dimensions: a. Input factors with 21 indicators; B. Process factors with 10 indicators; C. Output factors with 9 indicators; D. Key interactions with 10 indicators; and E. Contextual factors by 10 indicators. Data were analyzed by utilizing R, Amos and Super Decisions software. The findings indicate that 54 indicators have been adopted, which provide a model for improving the Audit Quality. Also the results of comparing the current and desired situation of audit quality improvement indicators shows a significant difference between the current situation of the audit quality and the desired environment in Iran. Finally, the results of ranking the dimensions affecting the improvement of audit quality Shows that process factors are in the first place of importance from the point of view of experts, input factors are in the second place, main interactions and contextual factors are both in the third place and output factors are in the fourth place. IntroductionThe accuracy of the operation of each component of the financial reporting supply chain leads to higher-quality financial reporting. One of the most important components of this chain is external audits that, by considering the public interests, assure that the financial information presented in financial reports is fair and reliable (IAASB, 2011; Royaei et al., 2015; Imani Barandagh, Mehrani and Hojjat Shamami, 2016). Therefore, the international auditing and assurance standards board (IAASB), using a holistic approach, published a framework for audit quality in which the main factors contributing to audit quality are introduced. Researchers in different countries, including Iran, are expected to pay attention to the indicators suggested by the IAASB and adjust these indicators according to the context in which audit firms operate to help those involved in the financial reporting supply chain, especially auditors, to improve audit quality.Thus, conducting a study aimed at developing a model for audit quality improvement in Iran, considering the indicators suggested by the IAASB to improve audit quality and enhance the position of the auditing profession in Iran.Research Question(s)The present study can answer this question: What is the audit quality improvement model in Iran?Literature Review2.1. Audit quality definition:There is still no comprehensive, worldwide, and consensual definition, and thus, audit quality can be introduced as a complex and multidimensional concept (Mashayekhi et al., 2013; Alavi and Vakili Fard, 2021) that cannot be limited to a simple definition and the opinions of all those involved in the financial reporting supply chain should be taken into account (Bonner, 2008; Knechel et al., 2012; IAASB, 2014; Mohammadrezaei et al., 2019).2.2. Efforts to improve audit quality:Financial crises in recent decades have called into question the auditing profession and audit quality. Therefore, Policymakers have made attempts to identify key indicators of audit quality. As a more considerable step, in 2014, the IAASB developed a framework for audit quality in which the main factors contributing to audit quality were introduced. The IAASB has introduced the main factors contributing to audit quality in this framework and believes that following the framework in the economic environment of each country can lead to high-quality audits and improve the position of the auditing profession in society.MethodologyThe present study is applied research in terms of purpose and descriptive survey in terms of the data collection method. The purpose of this study is to identify the indicators of audit quality improvement in Iran and develop a model for audit quality improvement. To this end, the fuzzy Delphi method and the confirmatory factor analysis (CFA) technique are employed.3.1. Statistical population and sampling methodThe statistical population of this study comprises audit experts (the partners and senior managers of audit firms that are a member of the IACPA and Iran audit organization). The expert panel members were selected using the purposive sampling technique and 80 questionnaires were distributed among the audit experts, and finally, 58 questionnaires were collected to analyze the data.Results4.1. The importance level of the research indicators based on experts’ opinions (the results obtained from the fuzzy Delphi method)According to the obtained results, no indicator is removed, and all the indicators play a role in improving audit quality in Iran and are confirmed by experts. 4.2. Audit quality improvement modelIn the next step, the CFA technique was used to extract the research final model. To this end, first, the first-order one-factor CFA model related to audit quality improvement was fitted, and after removing items with factor loadings less than 0.5, 54 indicators remained. The final research model, which is a model for improving audit quality in the economic environment of Iran, was formed as described in Figure 2. Discussion and ConclusionThis study, using the fuzzy Delphi method and obtaining the opinions of 58 experts, seeks to identify audit quality improvement indicators and design a model suitable for the economic environment of Iran. To this end, based on the theoretical framework, 60 indicators were collected and categorized into five dimensions: a) input factors with 21 indicators, b) process factors with 10 indicators, c) output factors with 9 indicators, d) key interactions within the financial reporting supply chain with 10 indicators, and e) contextual factors with 10 indicators. The results show that 54 out of 60 indicators in five separate dimensions are accepted, which represent the model for audit quality improvement in the economic environment of Iran according to experts’ opinions as described in the aforementioned model (Figure 2).
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Mohsen Khoshtinat; V. Nadi Gbomi
Volume 7, Issue 25 , April 2009, , Pages 53-85
Abstract
Many finance researchers know disability of classical models of assets pricing and efficient market hypothesis to explain predictable patterns in securities return, anomalies and mispricing in assumption of full rationality of economic agents. Based on this assumption, the probability that people will ...
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Many finance researchers know disability of classical models of assets pricing and efficient market hypothesis to explain predictable patterns in securities return, anomalies and mispricing in assumption of full rationality of economic agents. Based on this assumption, the probability that people will mistake is random and its effects quickly remove by other rational investors. By relaxing this assumption, some models developed based on specific trading strategies and others based on cognitive biases and psychological characteristics of investors.
One of the most common cognitive biases in the field of psychology is overconfidence that has been defined as overestimation (optimistic) of precise of private information. Many researchers explain stylized facts such short-term continuation (momentum) and a long-term reversal in stock returns, high levels of trading volume, excessive volatility, and a disproportionate amount of risk borne by investors by using overconfidence bias. In this study, which tried to plan and test four hypotheses based on the data of 119 companies during the period from the beginning of the 1378 to end of 1386 (for 9 years) in regard to evidence documentation for aggregate overconfidence behavior. Results of study show that evidence for supporting aggregate overconfidence is not strong.
Majid Shariatpanahi; Mostafa Bayati
Volume 4, Issue 13 , April 2006, , Pages 139-154
Abstract
Different explanations have been suggested for the puzzling negative relationship observed between stock returns and inflation. The most popular ones have been the Tax - Effects Hypothesis (Feldstein (1980)), the Proxy Hypothesis (Fama, 198l), and the Reverse Causality Hypothesis (Geske and Roll, l 983). ...
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Different explanations have been suggested for the puzzling negative relationship observed between stock returns and inflation. The most popular ones have been the Tax - Effects Hypothesis (Feldstein (1980)), the Proxy Hypothesis (Fama, 198l), and the Reverse Causality Hypothesis (Geske and Roll, l 983). This paper employs regression approach to investigate the relationship between inflation and TEPIX and TEDPIX. We use monthly data from 198l to 2005. Findings indicate that relationship between inflation and TEPIX and TEDPIX is poor and investment in Tehran security exchange can't be hedge against inflation.
