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
Aso Bahrami; Iraj Noravesh; abbas Raad; ata mohamadi molqarani
Abstract
The overall purpose of publishing financial statements is to provide information about financial status, performance results, and cash flows to stakeholders. Users' trust, especially investors, shareholders, and creditors, with the information in these statements is an incentive that leads one to fraud ...
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The overall purpose of publishing financial statements is to provide information about financial status, performance results, and cash flows to stakeholders. Users' trust, especially investors, shareholders, and creditors, with the information in these statements is an incentive that leads one to fraud in financial reporting. The purpose of present research is to predict fraud in fraudulent financial statements fraud. This triangle is based on the assumption that one is motivated to commit fraud when there are three elements of fraud. These three elements are 1. some perceived motivations for fraud, 2. some opportunities for fraud, and 3. methods of reasoning that fraud does not harm the value of the perpetrator (Cressey, 1973). In this study, the dependent variable of financial statement fraud is used by the researcher as a substitute for earnings management (profit). Independent variables include the pressure of financial stability, the greed of the perpetrator, ineffective supervision, effective supervision, the pressure of external expectations, and predicted financial goals. The statistical population of the study is listed companies in Tehran Stock Exchange and the statistical sample of 98 companies is selected through systematic elimination method during the years 2012 - 2018. The results of testing the research hypotheses using multivariate regression model and panel data model showed that the pressure of financial stability has a significant relationship with financial statements Fraud.
Javad Shekarkhah; seyyed hamid tamandeh
Abstract
Cognition and awareness of the firms' capital structure is important for potential shareholders and investors, and information on capital structure is used by creditors. The financing decisions of many firms depend on the market value of the stock. firms are issued when stocks are high and when they ...
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Cognition and awareness of the firms' capital structure is important for potential shareholders and investors, and information on capital structure is used by creditors. The financing decisions of many firms depend on the market value of the stock. firms are issued when stocks are high and when they are redeemed when stocks are low, the reason for this action is obtaining more finance. The purpose of this study is to examine the effect of market past values on investment decisions and Cumulative leverage changes of firms from the perspective of market timing theory.In this study, using financial information of 134 companies listed on Tehran Stock Exchange over the period of 2012-2018 and using generalized least square (GLS) regression analysis, the market timing theory was tested with growth opportunities and leverage changes of companies. Results of the study suggest that in a 95% certainty level, the first hypothesis was confirmed i.e. past market values have positive and significant impact on investment decisions. Also, the second hypothesis was confirmed i.e. past market values have negative and significant impact on Cumulative leverage changes. These observations confirm the market timing theory, that is, companies’ growth opportunities are controlled via the ratio, and leverage has a negative relationship with the ratio. Also variables of ratio of fixed assets and size of company have a significant and negative impact on investment decisions, while profitability, leverage, market value to liquidity ratio and liquidity have positive and significant effect on investment decisions. Finally, profitability and the ratio of total liabilities to total assets have a significant negative effect on the cumulative leverage changes.
nahid hoseini; Babak Jamshidinavid; Parviz Piri
Abstract
Prospect theory and reference point are some of the discussed issues in the behavioral finance paradigm that describe the situation of individuals in decision making. Experimental evidence indicates that investors select points as their reference points for their profit and loss decisions making. If ...
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Prospect theory and reference point are some of the discussed issues in the behavioral finance paradigm that describe the situation of individuals in decision making. Experimental evidence indicates that investors select points as their reference points for their profit and loss decisions making. If the price is lower than the reference point, they postpone their sales, as a result, the volume of transactions is also reduced, and if the price is higher than the reference point, they sell shares, which results in increased trading volume. The purpose of this study is to investigate thirty examples of Halo effects in the Iranian capital market with the emphasis on the role of accounting information in companies listed in Tehran Stock Exchange. The statistical population includes 115 companies that were active in the stock market from 2006 to 2017. In this study, the panel-data regression model was used to investigate the hypotheses. The results show that investors in the Iranian capital market do not use the management forecasts (relative profitability status of the company vs. the anticipated profitability of the company) following the pattern of the Halo effect phenomenon. In addition, investors in the Iranian capital market do not use the industry average (relative profitability status of the company vs. the industry average) following the Halo effect phenomenon.
Sayeedeh Mirzayee; Mohammadreza Abdoli; Alireza Koushki jahromi
Abstract
Efficient market hypothesis predicts that capital markets are beset with cer-tain biases which result from wrong estimation, and negatively influence shareholders’ expectations for higher returns, which in turn affects invest-ment efficiency, financial constraints and corporate performance efficacy ...
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Efficient market hypothesis predicts that capital markets are beset with cer-tain biases which result from wrong estimation, and negatively influence shareholders’ expectations for higher returns, which in turn affects invest-ment efficiency, financial constraints and corporate performance efficacy in competitive markets, and eventually mitigates firm value. The present study aims Financial reporting language Bad on Aggressive Financial Reporting Investor protection over the period 2013-2017. Earnings forecast error and CEOs’ overconfidence biases serve as the measure of CEO’s perceptual biases, the model developed by Biddle et al (2009) is employed to proxy for investment efficiency, and KZ model is also adopted to calculate financing constraints. The results reveal that both earnings forecast error and overconfidence biases negatively affect investment efficiency, while they positively influence cor-porate financing constraints. These results indicate that CEO’s perceptual biases creates a constraint on financing, and, on the other hand, reduces the efficiency of corporate investments. Under these conditions, the trust and confidence of investors and shareholders in relation to the company will be reduced, and the company will face negative features like the risk of a financial crisis.
salahaddin ghaderi; zahra lashgari; Yadolla Tariverdi; AmirReza Kaighoadi
Abstract
Risk identification and management is a new approach used to strengthen and enhance the effectiveness of organizations. The purpose of risk management is to identify and assess the risk and reduce it using resources available to the administrator. In this study, Enterprise Risk Managementmodel has been ...
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Risk identification and management is a new approach used to strengthen and enhance the effectiveness of organizations. The purpose of risk management is to identify and assess the risk and reduce it using resources available to the administrator. In this study, Enterprise Risk Managementmodel has been estimated and its effectiveness has been studied on the Corporate accounting and economic performance. Tehran stock exchange listed firms constitute statistical population of the research and the sample was selected imposing conditions of the research variables to 129 firms during 2008-2019. Statistical technique of panel data regression was used to analyze data and test the hypotheses. The results indicate that enterprise risk management has a positive and significant effect on the criteria of rate of assets, rate of equity, market value added and cash value added. And these results are supported by the model of COSO(2004). And by comparing the predictive power of Gordon model(2009) and comparing it with the COSO model(2004), it was concluded that Gordon model(2009) had the least error in forecasting accounting and economic performance.
Darioush Akhtarshenas; Ahmad Khodamipour; omid pourheidari
Abstract
Promoting corporate sustainability, as an important strategy for companies, is not a coincidence, but can be improved by identifying and considering different factors. Therefore, identifying the effective factors on corporate sustainability is essential. The purpose of this research is to develop a model ...
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Promoting corporate sustainability, as an important strategy for companies, is not a coincidence, but can be improved by identifying and considering different factors. Therefore, identifying the effective factors on corporate sustainability is essential. The purpose of this research is to develop a model to explain the effective factors on corporate sustainability through exploratory combination approach. In the qualitative part of the research, a model for effective factors on corporate sustainability has been provided by interview with specialists and experts and by using a snowball sampling method based on the thematic analysis of the interviews. In the quantitative part, in order to evaluate the validity of the presented model, by using from questionnaire, opinions specialists and experts were obtained and analyzed by one-sample t-test and one-way ANOVA. Also, confirmatory factor analysis was used to determine the factor loadings of the indices of each component. The research results showed four dimensions include: company characteristics, management factors, market factors and macro factors, nine components include: structural characteristics, functional characteristics, individual level, organizational level, capital market, business factors, economic factors, social factors and political factors and sixty indicators are affecting on corporate sustainability. In addition to confirming many of identifying factors in previous research, new factors such as community culture, country policy, ethics, legal requirements, corporate social reputation, intellectual capital and product competitiveness have been identified as effective factors of corporate sustainability. The findings have important insights for various stakeholders such as government, legislative bodies, regulatory bodies, companies and researchers. Accordingly, it is recommended to Corporate Audit and the Securities Exchange Organization take the necessary steps for codification corporate sustainability laws and standards.
