shokrollah khajavi; Hashem Nasirifar; Mohammad-Hossein Ghadirian-Arani
Abstract
Due to the benefits of political connections and the lower necessity of responding to market pressures to increase information quality by politically connected firms, it is expected that these firms will provide low-quality accounting information. With respect to the extended role of government in the ...
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Due to the benefits of political connections and the lower necessity of responding to market pressures to increase information quality by politically connected firms, it is expected that these firms will provide low-quality accounting information. With respect to the extended role of government in the economy of Iran, this study aims to investigate the impact of political connections on the accounting information quality of the firms listed in the Tehran Stock Exchange (TSE). The statistical sample includes 101 listed firms over the 2010-2018 period. Financial restatement and the intensity of financial restatement are used as indicators of the low quality of accounting information. To achieve the research objectives, two hypotheses have been proposed, and to test the hypotheses, the logistic regression and the multiple linear regression analysis in a panel data model were conducted. The results show that political connections have a positive effect on the occurrence and the intensity of financial restatement. Therefore, it seems that the firms' accounting information quality is affected by their political connections.
Javad Alizadeh; Javad Dustjabbarian
Abstract
The herd behavior of investors is of the most noticeable issues in finance. Herd behavior could lead to an increase in volatility of share prices and its deviation from intrinsic value. There have been some investigations on this issue in recent years which prove the presence of herd behavior in the ...
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The herd behavior of investors is of the most noticeable issues in finance. Herd behavior could lead to an increase in volatility of share prices and its deviation from intrinsic value. There have been some investigations on this issue in recent years which prove the presence of herd behavior in the Tehran Stock Exchange. However, few of them seek to study the impact of various stock traits on investors’ behavior. This study aims to regard the idiosyncratic risk as a possible determinant of herding and consider its impact on the extreme market condition, up and down markets. Using companies listed in Tehran Stock Exchange between 1388 to 1394(Iranian calendar), the results demonstrate that the idiosyncratic risk could intensify the herd behavior of investors in extreme down markets. In addition, for stocks with lower idiosyncratic risk, herding could be observed in down markets.
Accounting and various aspects of finance
Rafik Baghoomian; Hossein Rajabdorri; amirreza khanizolan
Abstract
The purpose of this study is to investigate the relationship between financial report readability and stock return synchronicity with the moderating role of institutional ownership and information asymmetry in companies listed in the Tehran Stock Exchange (TSE). This research is in terms of its purpose. ...
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The purpose of this study is to investigate the relationship between financial report readability and stock return synchronicity with the moderating role of institutional ownership and information asymmetry in companies listed in the Tehran Stock Exchange (TSE). This research is in terms of its purpose. Its period is from 2015 to 2019, and the selected sample consists of 171 companies listed in TSE. To test the research hypotheses through panel data, the ordinary least squares regression method in Eviews software was used. The findings of the research hypothesis test show that there is a negative and significant relationship between financial report readability and the stock return synchronicity. Also, institutional ownership as a moderating variable negatively correlates the illusion of financial report readability and the synchronization of stock prices. Additionally, the moderating effect of the information asymmetric variables on the relationship between the financial report readability and the price synchronization is positive and significant. According to the findings, on the one hand, it is necessary to examine the implications of financial report readability. On the other hand, in order to improve the market, more attention needs to be paid to the issues affecting the stock return synchronicity.
Accounting report
maryam yokhanehalghyani; jamal bahrisales; Saeid Jabbarzadeh Kangarluei; Akbar Zavari Rezaei
Abstract
Companies sometimes file fraudulent financial statements for tax fraud. The purpose of this study is to combine data mining tools and artificial intelligence with meta-heuristic algorithms to explain and optimize a model for detecting fraud and tax evasion by using the capacity of financial reporting. ...
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Companies sometimes file fraudulent financial statements for tax fraud. The purpose of this study is to combine data mining tools and artificial intelligence with meta-heuristic algorithms to explain and optimize a model for detecting fraud and tax evasion by using the capacity of financial reporting. Qualitative and quantitative indicators of financial reports of 1056 year- companies in the Tehran Stock Exchange in the period of 2006 to 2019 were studied in the classical approach and used to expand the model in the Adaptive Neural-Fuzzy Inference System. Findings show that in optimization with genetic algorithm, particle swarm optimization algorithm and differential evolution algorithm, the most efficient model is obtained by particle swarm algorithm, which is the most efficient algorithm in the study with experimental and educational data. The results indicate that the application of different optimization algorithms in the data mining approach increases the predictive power of the fraudulent financial-tax reporting identification model
Accounting and various aspects of finance
Zahra Yousefzadeh; Gholamreza Mansourfar; Farzad Ghayour
Abstract
Today, with rapid and sustained changes in business markets, a growing number of companies have turned diversification into new product segments or global markets by shifting their business to increase the importance of long-term financial viability and sustainability. Moreover, increasing the variety ...
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Today, with rapid and sustained changes in business markets, a growing number of companies have turned diversification into new product segments or global markets by shifting their business to increase the importance of long-term financial viability and sustainability. Moreover, increasing the variety of products, covering the uncertain demand of customers, managing inventories and timely action have been important issues in manufacturing companies. Accordingly, the main purpose of this study is to investigate the impact of diversification strategy on inventory performance, which is one of the topics of operations management by considering the classification of the diversity into related, unrelated and international. The statistical population studied includes all companies listed in the Tehran Stock Exchange during the years 2009-2018. Sampling has been done by screening method, and the number of companies in the final sample has reached 120 companies. The hypotheses have been tested by the estimated generalized least squares method. The results show that related and international diversification have positive and significant effects on inventory performance. The findings also indicate that unrelated diversification has an adverse effect on inventory performance, but this relationship is not statistically significant. Based on the acquired results, an increase in related and international variety of products, relying on higher safety stock, has led to an increase in sales. In addition, the insignificancy in the effect of unrelated diversification on inventory performance can be attributed to production costs and marketing programs of manufactured products.
Accounting and various aspects of finance
Roya Soltani; Ali ebrahimnejad
Abstract
In this study, we examine the market reaction to the asset revaluation of listed companies. We first estimate the market reaction to the asset revaluation announcement, then explore potential explanations for the market reaction. Asset revaluation can improve firm's access to financing by improving financial ...
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In this study, we examine the market reaction to the asset revaluation of listed companies. We first estimate the market reaction to the asset revaluation announcement, then explore potential explanations for the market reaction. Asset revaluation can improve firm's access to financing by improving financial ratios. On the other hand, the increase in the firm's capital from the revaluation is accompanied by stock split which results in a decrease in the theoretical share price. This apparent drop in theoretical share prices could induce shareholders' interest as a result of money illusion. To assess these alternative explanations, we run a cross-sectional regression of the cumulative abnormal return on proxies of each factor. To further explore the driver of market reaction, we examine whether firms that have re-evaluated their assets could improve their access to financing or reduce their financing costs. For this purpose, we study a panel of listed companies between 2011 and 2019 for their access to finance, financing cost, investment, and financial leverage, controlling for the firm and year fixed effects. Our results are more consistent with the nominal price reductions causing the market reaction. We do not find evidence of asset revaluations leading to the firm's better access to financing.
Accounting and various aspects of finance
Erfan Mohammadi; hamideh Esnaashari
Abstract
The risk of stock price crash is one of the topics of interest in capital market research. Since the main mission of capital market regulators is to protect the rights of investors, it has always been important to consider the factors that affect crash risk. The quality of financial reporting and earnings ...
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The risk of stock price crash is one of the topics of interest in capital market research. Since the main mission of capital market regulators is to protect the rights of investors, it has always been important to consider the factors that affect crash risk. The quality of financial reporting and earnings management patterns are the most important tools available to regulators that can help them manage crash risk aversion, which is why this study addressed them. Earning management patterns include earnings management through accruals and real earnings management. The statistical population of this study is the companies listed on the Tehran Stock Exchange and the research sample was selected in terms of some features (including 167 companies) for the period 2012 to 2018. The research method of the present study is descriptive- correlation and the research hypotheses are tested using the generalized least squares method. The results show that the accrued earnings management model is related to stock crash risk and the use of earnings management through accruals increases the risk of stock price falls. While this is not the case with earnings management through real activities, the application of this earnings management model has nothing to do with the negative changes in stock returns. In addition, audit quality weakens the relationship between accrued earnings management pattern and stock crash risk. While the relationship between real earnings management pattern and stock crash risk is not affected by audit quality
