Shekoufeh Nekoueizadeh; Mohsen Dastgir; Saeid Aliahmadi
Abstract
Considering the fact that economic crisis comes along with uncertainty and fluctuations in macroeconomic variables and it causes in a special situation in the economic circumstance of the country and companies activities in that, therefore it can affect the ability and the power of management on the ...
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Considering the fact that economic crisis comes along with uncertainty and fluctuations in macroeconomic variables and it causes in a special situation in the economic circumstance of the country and companies activities in that, therefore it can affect the ability and the power of management on the company’s performance and its value. Also, the quality of auditing and the quality of financial reporting in critical situations can moderate the opportunistic behavior of managers. The purpose of this study was to investigate the effect of economic crisis on the relationship between management power, company value and financial performance considering the moderating effect of the Characteristics of financial reporting on Tehran Stock Exchange companies. In this research, two Characteristics of financial reporting including financial reporting quality and audit quality have been used to investigate ethical characteristics of the company.Accordingly, Using the systematic removal method, the data of 197 listed companies in Tehran Stock Exchange for the years 2006-2017 is analyzed. The results of the study show that the characteristics higher level of audit quality by decreasing the negative impact of the Crisis conditions leads to a positive effect of the power and ability to manage the company's value and financial performance. Also, the characteristics higher level of financial reporting quality, as well as the negative effect of the critical situation, only have a positive effect on the ability and power of management on the value of the company but have no significant effect on the firm's financial performance.
Ghasem Blue; Mohammad Marfou; Arian Ghahremani
Abstract
The purpose of the present study is to explain the effect of accounting information quality on corporate equity cost and to investigate the moderating role of information asymmetry and the simultaneous moderating role of this variable and the comparability of financial statements in this context. The ...
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The purpose of the present study is to explain the effect of accounting information quality on corporate equity cost and to investigate the moderating role of information asymmetry and the simultaneous moderating role of this variable and the comparability of financial statements in this context. The research timeframe for this period is 5 years from the beginning of 2013 until the end of 2017 and the sample includes 91 companies listed in Tehran Stock Exchange. Multivariate regression was used for statistical analysis. The results of the analysis indicate that the quality of accounting information has an adverse effect on equity cost, so that the higher the quality of accounting information, the lower the cost of equity; and vice versa. Also, information asymmetry has a direct relationship with this effect. But the simultaneous impact of comparability of financial statements and information asymmetry on the impact of accounting information quality on equity costs is not confirmed. The results of the first two hypotheses are similar to those of Emof et al. (2018), which examined the effect of accounting information quality on equity cost in the United States, but the third hypothesis suggests that it is inconsistent.
Sayed Mahmoud Mousavi Shiri; Mahdieh Yazdani; Mahin Mirzaee
Abstract
The aim of this paper is to exam Auditors’ Performance in fraud brainstorming sessions. The audit team needs some discussion and dialogue sessions to discuss how and when the financial statements of an entity can be susceptible to significant financial misstatement due to fraud or error .In this ...
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The aim of this paper is to exam Auditors’ Performance in fraud brainstorming sessions. The audit team needs some discussion and dialogue sessions to discuss how and when the financial statements of an entity can be susceptible to significant financial misstatement due to fraud or error .In this study, we refer to paragraph 19 of Auditing Standard 240; evaluate the effect of brainstorming sessions in the performance of auditors, in discovering the fraud. For gathering of data one scenario was provided and distributed between 216 people of administrators and auditors working in the public audit firms of Certified Public Accountants that divided to four groups. The responds of Nominal Group Technique and interactive Groups for fraud risk factors, Quality of Fraud Hypothesis were compared. The methods used to test hypotheses were independent t-test and continual multivariate. Overall, our results show that nominal teams outperform interacting teams. We also provide evidence that social loafing there are in interacting teams.
Maryam Nobakht; Younes Nobakht
Abstract
Tax avoidance is one of the most important decisions managers, which can have a positive or adverse effect on a firm's value by preventing the transfer of the company's resources to the government. The purpose of this study is to investigate the impact of tax avoidance on firm value in companies listed ...
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Tax avoidance is one of the most important decisions managers, which can have a positive or adverse effect on a firm's value by preventing the transfer of the company's resources to the government. The purpose of this study is to investigate the impact of tax avoidance on firm value in companies listed to Tehran Stock Exchange with a sample of 180 firm's for the years 2008-2018. To test the hypotheses, multivariate linear regression got used and to assess the firm's value, two accounting criteria of free cash flow to the firm and free cash flow from the business have been used. Also, effective tax rate operating cash flow have been used to measure tax avoidance. The research findings showed that tax avoidance has a positive and significant effect on the accounting criteria of firm's value, which means that with increasing tax avoidance, the value of the company increases. The intensity of this increase in the estimated value of the firm through free cash flow from the business is greater than the estimated value of the firm through the free cash flow from the firm, which can be due to the neutralization of the financing effect. Thus, the research results confirm the theory of value creation in the relationship between tax avoidance activities and company value.
Mostafa Abdi; Hassan Zalaghi; Mahdi Kazemi Olum; Majid Aligiglo
Abstract
According to the agency theory, the existence of effective corporate governance mechanisms (audit committee) can solve the problems associated with agency issues and, as a result, reduces the free cash flow of companies. However, according to the transaction costs theory, the existence of quality corporate ...
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According to the agency theory, the existence of effective corporate governance mechanisms (audit committee) can solve the problems associated with agency issues and, as a result, reduces the free cash flow of companies. However, according to the transaction costs theory, the existence of quality corporate governance mechanisms not only does not reduce the level of these types of flows, but even leads to the increase in free cash flow due to the lower cost of these types of internal financing in comparison with other financing methods. Therefore, the purpose of this study is to investigate the relationship between the audit committee's characteristics (size, independence, financial expertise, and gender of the members of the audit committee) and the free cash flow in companies admitted to Tehran Stock Exchange during the period from 2014 to 2018. The research hypotheses were tested using regression analysis and unbalanced combination data approach. The research findings indicate that there is a positive and significant relationship between the characteristics of size, independence, financial expertise, and gender of the members of the audit committee and free cash flow. These findings are in line with the transaction costs theory. The research findings also lead to the development of theoretical and experimental literature on the effectiveness of the role of audit committees in the field of company risk management with an emphasis on liquidity management and free cash flows.
Mohammad Hossein Safarzadeh; Abbas Hooshmand
Abstract
The purpose of this study is to investigate the relationship between auditors' characteristics and their business and professional orientations. The impact of these professional and business orientations is also examined on actions that lead to lower quality of audit services. Using the questionnaire, ...
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The purpose of this study is to investigate the relationship between auditors' characteristics and their business and professional orientations. The impact of these professional and business orientations is also examined on actions that lead to lower quality of audit services. Using the questionnaire, the required data were collected from 283 certified accountants. The results show that among the characteristics of auditors, the level of knowledge and awareness, degree of adaptation and communication skills of auditors have a positive and significant relationship with their professional orientation, but marketing skills has a negative relationship with professional orientation. While creativity and innovation had no significant relationship with professional orientation. On the other hand, the auditors' marketing and communication skills have a positive and significant relationship with their business orientation. However, the level of knowledge and awareness, compatibility and creativity of auditors has no significant relationship with business orientation. Finally, professional orientation was found to decrease actions to reduce audit quality, whereas the business orientation exacerbated it. Therefore, it should be noted that auditors' business orientation may adversely affect the quality of their audits, so adopting appropriate mechanisms in this regard seems necessary.
Tayebeh Zanganeh; Mohammad Ali Rastegar; Kazem Chavoshi; Mir feyz Fallahshams
Abstract
Entering into the interbank market in order to balance profitability and liquidity risk management, depending on the conditions of short-term activities, banks are required to equip resources through this market or to lend short-term loans to other banks. Banks' commitments to each other mainly arise ...
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Entering into the interbank market in order to balance profitability and liquidity risk management, depending on the conditions of short-term activities, banks are required to equip resources through this market or to lend short-term loans to other banks. Banks' commitments to each other mainly arise in the interbank market, which can lead to increased systemic risk due to the spillover effect. Therefore, the objective of this paper is to analyze the network dynamic stability of the Iranian overnight money market through methods of statistical mechanics applied to complex networks .The results show that the network structure changes during time depending economic conditions. Systemic risk measures such as clustering coefficient, average short path, heterogeneity and centrality, show that the networks systemic risk increases and then by occurring default and crisis in one bank, default spillover during the domino effect in whole network. Also, in the event of failure, the most vulnerable group is to privatized and specialist governmental banks, and the private banks, due to the high volume of exchanges and net negative flows, can put a considerable systemic risk to the interbank market network. Morever, the signals of speculative activity by private banks are found.
