Accounting and various aspects of finance
mehdi heidari; Alireza Aliakbarlou; Ebrahim Khakpour Heydaranlou
Abstract
Conservatism is an action that is used in conditions of uncertainty and limiting management optimistic behaviors to increase the reliability of financial statements. Financial distress and growth opportunities are among the factors that can improve the level of accounting conservatism. Meanwhile, managers' ...
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Conservatism is an action that is used in conditions of uncertainty and limiting management optimistic behaviors to increase the reliability of financial statements. Financial distress and growth opportunities are among the factors that can improve the level of accounting conservatism. Meanwhile, managers' behavioral characteristics are expected to influence the relationship between financial distress and growth opportunities with accounting conservatism. Therefore, the aim of this study was to investigate the effect of management uncertainty on the relationship between financial distress, growth opportunities and accounting conservatism. The results of this study show, the variables of financial distress and growth opportunities have a positive and significant effect on conservatism. Management overconfidence has no significant effect on the relationship between financial distress and conservatism but it moderates the relationship between growth opportunities and conservatism and has a negative and significant effect on the relationship between them. In other words, that managers with unfavorable financial situation do not have a positive outlook on the future situation of the company and increase the level of conservatism. Managers of large and growing companies also tend to opt for more conservative accounting practices to minimize their political and social costs. On the other hand, overconfident managers are optimistic about the future state of the company and reduce the level of accounting conservatism.
Accounting and various aspects of finance
javid yarahmadi; Mosa Bozorg Asl; mohammad ebrahimi noudeh
Abstract
This research has been conducted with the aim of experimental test of the effect of political relations on the amount of investment of companies and its efficiency in the period of 2012 to 2019 of companies listed in the Tehran Stock Exchange. The method of data collection is archival and reference to ...
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This research has been conducted with the aim of experimental test of the effect of political relations on the amount of investment of companies and its efficiency in the period of 2012 to 2019 of companies listed in the Tehran Stock Exchange. The method of data collection is archival and reference to databases and the method of data analysis is multivariate regression model using panel data model and fixed effects method. The results show that the relationship between political relations and the amount of investment as well as investment efficiency is positive and significant. These results indicate that companies with political connections have more investment than other companies and investment efficiency is higher in companies with political connections. According to the research findings, it can be seen that companies with political connections invest more and more efficiently than other companies due to their government benefits and privileges, as well as the ease of attracting financial resources.
Accounting report
Ali Saqafi; Ghasem Blue; HosseinAli Sohrabi Varzaneh
Abstract
Development of Earnings quality measures, especially Accruals quality measures, has been a critical line of research over more than three decades. Literature indicates that linear-regression-based measures are subject to (suffer from) significant estimation error in non-discretionary accruals estimation. ...
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Development of Earnings quality measures, especially Accruals quality measures, has been a critical line of research over more than three decades. Literature indicates that linear-regression-based measures are subject to (suffer from) significant estimation error in non-discretionary accruals estimation. Therefore, recent research used machine learning algorithms including multilayer perceptron and radial basis neural networks, in order to address the issue. However, being founded on Blackbox approach limits future development and applicability of these methods. So, to address the limitations, we have used Group Method of Handling Data (GMDH) approach, as a Whitebox approach, in order to estimate the accruals. Findings using data from 299 Tehran Securities Exchange listed companies during 1385 to 1397 suggests that GMDH-based models perform superior to regression models and multilayer perceptron neural networks in terms of estimation error measured by mean squared error. Moreover, Cash flow approach in total accruals calculation leads to less estimation error compared to balance sheet approach. As a result, the model developed in this article can be used by market participants such as regulators, analyst and auditors in order to detect probable financial reporting misstatements.
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 ...
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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.
Accounting and various aspects of finance
younes Badavar Nahandi; قادر 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
mohammad namazi; Zahra Khorramdel Masouleh
Abstract
The purpose of this study is to investigate the effect of green product innovation and green process innovation on company's financial, environmental and economic performanc. The mediating role of environmental management accounting on the relationship between product and green process innovation ...
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The purpose of this study is to investigate the effect of green product innovation and green process innovation on company's financial, environmental and economic performanc. The mediating role of environmental management accounting on the relationship between product and green process innovation and company performance is also examined. The statistical sample includes 202 companies and the standard questionnaire was used to collect data and the structural equation modeling approach and the PLS method were used to test the hypotheses and the conceptual model of the research. Findings show that green product innovation has a significant impact on the financial, environmental and economic performance of the company, both directly and through environmental management accounting. Green product innovation affects environmental performance in the oil and gas and petrochemical, metal and food industries, as well as economic performance in the metal industry alone. In addition, green process innovation has a significant effect on the financial and economic performance of the company both directly and indirectly through environmental management accounting, but the impact of green process innovation on the environmental performance of the company is only through the accounting variable of environmental management accounting. Green process innovation affects financial performance in oil and gas and petrochemical, metallic and chemical industries and economic performance only in oil and gas and petrochemical industries. In the cellulose industry, neither green product innovation nor green process innovation affects any of the company's operations. Findings show the importance of green innovation and environmental management accounting in improving the company's performance.
Seyed Ali Hosseini; zahra masoumi Bilondi
Abstract
The recent welcome of companies to capital increases from revaluations has highlighted the role of experts, and increasing trust on the work of experts has led to concerns about audit quality. The aim of this study is to identify the challenges and barriers to using expertise services in auditing and ...
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The recent welcome of companies to capital increases from revaluations has highlighted the role of experts, and increasing trust on the work of experts has led to concerns about audit quality. The aim of this study is to identify the challenges and barriers to using expertise services in auditing and ways to improve it. The research is qualitative and the data were collected through interviews with 17 auditors and Official Experts of Justice official and analyzed by theme analysis.
According to the research findings, weakness of supervision, Lack of expert independence , limitations, structural inefficiency, reluctance of the auditor, non-compliance with the auditor's professional ethics, economic environment and communication problems and coordination of challenges and barriers to using expertise services were identified and rules and regulations improvement, strengthening infrastructure and promoting and developing expertise services, strategies to improve the use of expert services were identified. The results of the research can be useful in order to achieve effective use of experts in the audit process and as a result higher audit quality.
Accounting tools
jafar babajani; Farrokh Barzideh
Abstract
Public Sector Internal Audit, by delivering reliable and consulting services in line with improvement and eliminate challenges can support organizations to achieve goals and provide better services. The purpose of this study is to provide a model for the establishment of internal audit in the public ...
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Public Sector Internal Audit, by delivering reliable and consulting services in line with improvement and eliminate challenges can support organizations to achieve goals and provide better services. The purpose of this study is to provide a model for the establishment of internal audit in the public sector entities in Iran. The approach of the research is based on qualitative method by using fuzzy Delphi model. The statistical population consisted of 85 experts and elites in the internal audit who were selected as the expert group of the research by using non-probability sampling technique.
Finally, after the consensus of the experts, we establish the framework internal audit in public sector by considering external environment and our country criteria. This framework can assisting ministers and heads of state agencies in promoting the level of performance and evaluation of financial and operational accountability in addition to growth and improvement of the financial oversight system and the increase of efficiency, effectiveness and economic scale in the public sector.
Accounting report
Ali Rahmani; Azam Valizadeh Larijani; Elham Rabihavi
Abstract
The need for a set of qualified accounting standards has led to the development of international financial reporting standards. like many other countries globally, Iran has adopted these standards and required their application in a group of capital market companies. The main purpose of this study is ...
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The need for a set of qualified accounting standards has led to the development of international financial reporting standards. like many other countries globally, Iran has adopted these standards and required their application in a group of capital market companies. The main purpose of this study is to examine the challenges and benefits of implementing International Financial Reporting Standards from the perspective of the executives who are required to use the standards. The statistical population of this study, consisting of managers of banks, insurance companies and, stock exchange companies, are required to comply with IFRS according to the enactment of the Stock Exchange and Securities Organization, which includes a total of 77 companies. The collection tool of this research is a questionnaire that was distributed from September to October 2016. The answers to 59 questionnaires were received from 77 distributed questionnaires. For banks, the biggest challenge was the cost of training at the level of companies and users of financial information, for insurers it was the difference between tax laws and international financial reporting standards, and for other companies, the lack of accountants and auditors that have the technical skills of implementing international financial reporting standards.
Financial Accounting
darioush foroughi; mahshid shahrzadi
Abstract
The Aim of this study is to introduce the left tail risk as a driver for creating idiosyncratic volatility and explainer the negative returns due to high unsystematic volatility. In addition, the present study is trying to determine how the idiosyncratic volatility puzzle occurs. In this study, univariate ...
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The Aim of this study is to introduce the left tail risk as a driver for creating idiosyncratic volatility and explainer the negative returns due to high unsystematic volatility. In addition, the present study is trying to determine how the idiosyncratic volatility puzzle occurs. In this study, univariate and bivariate portfolio analysis as well as Fama and Macbeth (1973) regression have been used. For this purpose, the information of Tehran stock exchange and Iran fara bourse companies during the years 1384 to 1398 has been used. The results of this study indicate the existence of the idiosyncratic volatility puzzle (the low (high) returns of high (low) idiosyncratic volatility stocks) and left tail risk anomaly (the low (high) returns of high (low) left tail risk) in the research sample. The idiosyncratic volatility puzzle (the low (high) returns of high (low) idiosyncratic volatility stocks) is no longer detected when idiosyncratic volatility-sorted portfolios are neutralized to left tail risk, regression control for left tail risk and factor models include a left tail risk factor. The left tail risk plays the important role to explain idiosyncratic volatility puzzle (the low returns of high idiosyncratic volatility stocks) and the reason for this explanation is the falling stock price pressure with high left-tail risk on stocks with high unsystematic volatility.
Financial Accounting
rahim bonabi ghadim; Seyed Hosein Sajadi
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.
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