Jafar Babajani; Ali Saghafi; Vajhollah Gorbaizadeh; Hiva Rastegar Moghadam
Abstract
It is expected that accountants provide information which increases the ability of decision making and professional judgement. In this regard, the rendered information should entail characteristics such as ethical principles. In other words, professional accountants should comply not only with the accounting ...
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It is expected that accountants provide information which increases the ability of decision making and professional judgement. In this regard, the rendered information should entail characteristics such as ethical principles. In other words, professional accountants should comply not only with the accounting standards and technical norms, but also with ethics which is a preventive factor in financial fraud and corruption. However, the question is how to equip accounting graduates with ethical competencies. Increasing attention to this issue in recent years has resulted in creation of some models for educating ethical competencies. In the present research, the validity of three-dimensional model of ethical competencies’ education has been analyzed. Three-dimensional model of ethical competencies’ education emphasizes on education of eleven competencies as a separate course with combinational teaching method. The statistical population has consisted of bachelor students majoring accounting at the universities in Tehran. Moreover, two-stage sampling technique has been used as a sampling method. The research has been implemented using Pretest-posttest control group design and the data have been analyzed by univariate analysis of covariance. The results have shown that the mentioned ethical education has developed the students’ moral judgements. So, it is expected that by using the model in academia, accounting graduates will become familiarized with necessary competencies to make ethical decisions.
Financial Accounting
Ali Rahmani; Gholamreza Solimani; Mandana Taheri
Abstract
Interest groups, especially shareholders have demand for Disclosure and Reporting in the capital market and they change their expectations of risk and return based on disclosure of information. Therefore, disclosure has economic consequence for companies that according to the empirical literature, cost ...
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Interest groups, especially shareholders have demand for Disclosure and Reporting in the capital market and they change their expectations of risk and return based on disclosure of information. Therefore, disclosure has economic consequence for companies that according to the empirical literature, cost of capital, information asymmetry and stock liquidity, there are three important consequences of disclosure and reporting. One of the disclosures of companies is risk disclosure in the capital market, especially for banks and financial and credit institutions which it require in the form of financial statements and the Report of the Board to the Stock Forum based on complies with the regulations of the Stock Exchange and the Central Bank of Iran. In this paper, we survey the effect of risk disclosure in bank listed in stock market on cost of capital, information asymmetry and stock liquidity as three important of risk disclosure consequences. For this aim, by using the annual data of 18 banks listed in Tehran Stock Exchange during the years 1390 to 1395 we estimate simple regression with panel data. The results show the main hypothesis (there is a consequential risk disclosure of the banks listed in the stock market), confirms. In addition, risk disclosure has a positive and significant relationship with cost of capital and information asymmetry, but there is no significant relationship between risk disclosure and stock liquidity.
Accounting report
Fahime Ebrahimi; Mohammad Hosein Setayesh; Hamidreza Zareifard
Abstract
Prospect theory explains how individuals’ feelings and preferences influence their decision-making. The purpose of this research was to investigate earnings manipulation incentives within companies listed in Tehran Stock Exchange using fourfold pattern of risk attitudes provided by the cumulative ...
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Prospect theory explains how individuals’ feelings and preferences influence their decision-making. The purpose of this research was to investigate earnings manipulation incentives within companies listed in Tehran Stock Exchange using fourfold pattern of risk attitudes provided by the cumulative prospect theory. The period of this research was 6 years, from 2013 to 2018 and included 695 observations. Hypothesis testing using logistic regression, with the average competitor performance within the industry as the reference point, revealed a significant positive (vs. negative) effect of management’s loss (vs. gain) estimates relative to the reference point on earnings manipulation. In other words, when management’s estimate of the likelihood of loss relative to the reference point is high (vs. low), the likelihood of earnings manipulation increases (vs. decreases). Furthermore, when management’s estimate of the likelihood of gain relative to the reference point is low (vs. high), the likelihood of earnings manipulation increases (vs. decreases). The findings of research also provided evidence for loss-aversion among managers. Therefore, the evidence suggests that the cumulative prospect theory can be utilized to explain managerial incentives for earnings manipulation.
Accounting report
Alireza Rahrovi Dastjerdi
Abstract
Since the volume of corporate information disclosures is constantly increasing, this study seeks to distinguish information with a "text" nature from information with a "numbers" nature to examine the existence and the direction of the volume of these two types of information on the efficiency of the ...
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Since the volume of corporate information disclosures is constantly increasing, this study seeks to distinguish information with a "text" nature from information with a "numbers" nature to examine the existence and the direction of the volume of these two types of information on the efficiency of the stock price formation in companies. This study also deals with the effect that the volume of these two types of disclosed information have on each other in the process of price formation. However, it does not concentrate on the quality of the content of accounting information and its usefulness. The research sample consists of 169 companies listed on the Tehran Stock Exchange in 1397 (Iranian calendar). Research hypotheses were tested cross-sectionally using ordinary least squares regression. The results revealed that the amount of disclosed information, whether in the form of "text" or "numbers," in general, does not significantly affect the efficiency of the process of the companies' stock price formation in the Iranian capital market. Also, the volume of these two types of information cannot strengthen the influence of each other on the efficiency of the stock price formation process. In addition to expanding the accounting literature in the areas of "disclosure" and "market efficiency," the results of this study contain significant achievements for policymakers, analysts, shareholders, and company managers regarding the volume of information disclosure. The users' ability and the disclosure quality are also some other factors that should be considered when deciding whether to increase the volume of disclosure.
Accounting report
Mojtaba Golmohammadi shuraki; Abolfazl Zare Mehrjardi
Abstract
Audit fee, which is one of the signs of an audit effort, is an important factor in the acceptance or rejection an audit by owners and auditors. The characteristics of the client and especially the characteristics of financial reporting are important factors that can affect the timing of the audit and ...
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Audit fee, which is one of the signs of an audit effort, is an important factor in the acceptance or rejection an audit by owners and auditors. The characteristics of the client and especially the characteristics of financial reporting are important factors that can affect the timing of the audit and subsequently the audit fee. The main purpose of this research is to investigating the relationship between accounting comparability (as qualitative financial reporting characteristic) and audit fees. For this purpose, a sample of 70 companies listed in Tehran Stock Exchange between 2015 and 2019 has been studied. Research hypotheses have been tested using regression analysis based on cross-section data. Evidence research shows that there is a negative and significant relationship between the accounting comparability and audit fees. This conclusion can be interpreted in terms of inherent risk of audit and information efficiency, because accounting comparability reduces audit risk and evidence acquisition costs. Also, the results show that there is a significant negative relationship between comparability and audit delay. In addition, the results suggest that there is not a significant negative relationship between audit fees and board independent, ownership concentration and institution ownership as corporate governance mechanisms.
Accounting and various aspects of finance
Ramin Hosseini; Alireza Matoufi; Mansor Kargaz; Ali Khozan
Abstract
One of the problems that many organizations have is changing the behavior of the employees of that organization. Leaving the state of behavioral balance can be considered as human behavioral entropy that can no longer comment on his behavior. Understanding the causes of these behaviors can prevent many ...
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One of the problems that many organizations have is changing the behavior of the employees of that organization. Leaving the state of behavioral balance can be considered as human behavioral entropy that can no longer comment on his behavior. Understanding the causes of these behaviors can prevent many problems in organizations. The purpose of this study is to develop a model of auditors' behavioral entropy.. The present study was conducted in the framework of a qualitative approach and using the data research method of the foundation in 2019. Data collection tools were semi-structured interviews and in order to collect information, using purposive sampling method with 29 auditors of the auditing organization and managers of the auditing organization, 15 of whom were members of the community. And 14 of them were other auditors, familiar with the concept of behavioral entropy. In Tehran, interviews were conducted using the snowball method. . Data analysis was performed in three stages of open coding, axial coding and selective coding. Based on that, a qualitative research model was designed. In this model, the most important causal factors included the economic characteristics of the country, the auditor's financial condition, individual and family characteristics, educational and experimental characteristics. Based on that, a qualitative research model was designed. In this model, the most important causal factors, including the economic characteristics of the country, are the audited financial conditions. The underlying context also includes the control system, commitment to professional use, and professional budgeting
Financial Accounting
Roohollah Arab; Mohammad Gholamrezapoor; Narjes Amirnia; Seyed pouria Kazemi
Abstract
According to the of alignment and entrenchment theories, the CEO power may lead to a reduction audit fees by increasing the earning quality and reducing audit risk, or through opportunistic earnings management and fraudulent financial reporting can lead to increased agency problems and audit risk, and ...
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According to the of alignment and entrenchment theories, the CEO power may lead to a reduction audit fees by increasing the earning quality and reducing audit risk, or through opportunistic earnings management and fraudulent financial reporting can lead to increased agency problems and audit risk, and ultimately to increased audit fees. Therefore, the purpose of the this study is to investigate the relationship between CEO power and audit fees and study the moderating effect of family ownership on this relationship with respect to alignment and entrenchment theories. To test the research hypotheses, the financial information of 88 companies listed on the Tehran Stock Exchange in the period between 2012 to 2019 has been used. The results of statistical tests show that there is a negative and significant relationship between CEO power and audit fees. In addition, the results showed that family ownership also moderated and exacerbated the relationship between CEO power and audit fees.
