Empirical Studies in Financial Accounting

The economic consequence of Risk Sentiment in annual reports using dynamic models

Document Type : Research Paper

Authors

Akram Taftiyan 1
fatemeh mansuri mohammad abadi 2
akram abdollahi asad abaadi 3

1 Assistant Professor, Department of Accounting, Yazd Branch, Islamic Azad University, Yazd, Iran.

2 Ph. D. Student, Department of Accounting, Yazd Branch, Islamic Azad University, Yazd, Iran.

3 3. Ph. D. Student, Department of Accounting, Yazd Branch, Islamic Azad University, Yazd, Iran.

https://doi.org/10.22054/qjma.2023.71752.2434
Abstract
The current research has investigated the economic consequences of risk perception in annual reports; which is functional in terms of result, correlational and post-event in terms of descriptive method. The statistical population of this research includes all the companies admitted to the Tehran Stock Exchange between 2008 and 2021, and 130 firms were selected as a statistical sample by systematic elimination (1820 observations).In this study, the accounting criteria of company value (rate of return on assets), the market criterion of company value (Tobin's Q) and the economic criterion of company value (added market value) were used to measure the economic outcome. In order to increase the degree of confidence in the results of hypothesis testing, static and dynamic panel data regression method was used. According to the findings of the research, in static modes and using the EViews software, it shows that there is a positive relationship between the market measure of the company's value (Tobin's Q) and the economic measure of the company's value (market value added) in both the static and dynamic modes with the sense of risk in annual reports. But there is no significant relationship between the accounting measure of company value (rate of return on assets) and the sense of risk in annual reports.

Keywords

Risk sentiment
annual reports
economic consequences of risk sentiment
dynamic models
Subjects
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Empirical Studies in Financial Accounting
Volume 19, Issue 76
Winter 2023
Pages 161-187

  • Receive Date 10 January 2023
  • Revise Date 04 March 2023
  • Accept Date 02 March 2023

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