Ali Saghafi; Abdol Hossein Talebi Najafabadi
Abstract
Diffusion of corporate governance mechanisms leads to stabilize the financial markets, and economic growth and helps to companies to have a proper implementation of corporate governance in competition. Because proper implementation these mechanisms express of necessary motivation for managers to arrive ...
Read More
Diffusion of corporate governance mechanisms leads to stabilize the financial markets, and economic growth and helps to companies to have a proper implementation of corporate governance in competition. Because proper implementation these mechanisms express of necessary motivation for managers to arrive to determinate goods, corporate proper value and also stockholders efficiency supervision, this approach leads to trust creation in investors. That this make success initial public offering stocks in corporate specially governmental corporate. of company in addition to the way of supervision on the efficiency of stockholders. In this research examining influence of above mechanisms on corporate value as a one of dimension of turn over in124 governmental and nongovernmental corporate that they have been initial offering in 2003-2013 time series in the Tehran stock exchange. research results indicate that opposite to the discussed theories, there is no significant relation between principle of corporate sovereignty including the establishing an audit committee, breakdown the role of managing director from chairman of the board direct and the size of managing board with the value (performance) of initial offering company. It seems Tehran stock exchange space is not that, the competition in the environment of competition enough and mainly audit committee’s structure have problems and managers have dominance on they and authorities that exist in charter of the audit committees are action unenforceable.
Mehdi Moradzadeh Fard Moradzadeh Fard
Abstract
This study has been implemented with the aim of the development of the researches in the scope of the management effects through investigation of the management ability on the investment decisions and the stock price crash risk. In this regard and in order to measure the managers ability and its ...
Read More
This study has been implemented with the aim of the development of the researches in the scope of the management effects through investigation of the management ability on the investment decisions and the stock price crash risk. In this regard and in order to measure the managers ability and its related effects on the investment efficiency (in the form of three models) and also its interaction with the element of the reporting quality on the future stock price crash risk (in the form of two models), the Demorgian et al (2013) model has been used. Hence two different statistical samples from the Tehran stock exchange listed companies and with the implementation of the Systematic removal model have been used. Also in order to examine the hypotheses, estimation methods and the assumption of the model, the Panel analysis has been used. Our findings show that the managerial talent decreases the underinvestment and reinforces the overinvestment and generally increases the deviation of the expected level of investment. In addition, the results of this study on the one hand, show that the managerial talent, meaningfully, decreases the future stock price crash risk and from the other hand it shows that the desirable reporting quality, decreases the future stock price crash risk. But there is no evidence showing the existence of an interactive relationship between capable managers and high reporting quality with future stock price crash risk.
Rafik Baghoomian; Hojjat Mohammadi Mohammadi; Sajad Naghdi
Abstract
This paper assesses the impact of a comprehensive set of macroeconomic factors (including changes in exchange rate, changes in inflation rate, changes in liquidity, changes in trade balance, and changes in gross domestic production) on error of management earnings forecast in companies ...
Read More
This paper assesses the impact of a comprehensive set of macroeconomic factors (including changes in exchange rate, changes in inflation rate, changes in liquidity, changes in trade balance, and changes in gross domestic production) on error of management earnings forecast in companies annual reports. Detailed analysis of research related to earnings forecasting bymanagers and especially researches in Iran, indicates lack of adequate attention to the impact of the macroeconomic variables on earnings forecast error so this paper seeks to fill this research gap. The data set includes 80 companies listed on Tehran Stock Exchange (TSE) for the period of 1386 - 1393. The study used Ordinary Least Squares (OLS) regression model toexamine the relationship between above mentioned macroeconomic factors and management earnings forecast. The empirical results show that among the macroeconomic variables that have been examined, there are only significant positive relationships between two of above mentioned macroeconomic factors (including changes in exchange rate, and changes in gross domestic product) and management earnings forecast. We did not find any statistically significant association between other macroeconomic factors (including changes in inflation rate, liquidity, and trade balance) and management earnings forecast. The results suggest that macroeconomic variables can affect the accuracy of earnings forecasts by management, hence the neglecting of such factors can result in increasing in the error of earnings forecasts.
Reza Hesarzadeh; Hossein Etemadi; Adel Azar; Ali Rahmani
Abstract
According to the information perspectives of accounting, the main function of accounting is to provide information and to reduce uncertainty. Therefore, accounting capacity of reducing uncertainty determines the accounting quality (AQ) and so, we are attempting to find the best combinations ...
Read More
According to the information perspectives of accounting, the main function of accounting is to provide information and to reduce uncertainty. Therefore, accounting capacity of reducing uncertainty determines the accounting quality (AQ) and so, we are attempting to find the best combinations of AQ Proxies whose trading off can reduce uncertainty. The purpose of this paper is to explore how AQ Proxies could reduce uncertainty. Tree analysis (structures of if and then) is employed since this analysis could empirically address boththe trade-off of Proxies and the importance of each measure in reducing uncertainty. Also, traditional statistics tests are employed. The Decision Tree analysis creates a tree-based classification model. Our findings suggest that there are at least three interaction paths through which accounting quality Proxies could reduce uncertainty. In contrast to previous researches which have found it difficult to investigate the trade-offs of AQ Proxies; this paper shows that it is possible to address it and in this way, it could prepare a number ofrules of thumb to reduce uncertainty through AQ Proxies. These findings have different implications for policy makers, audit committees, and investors.
Seyed Kazem Ebrahimi; Ali Bahraminasab; Sedigheh Parvaneh
Abstract
The goal of this paper is to examine the association between product marketcompetition and corporate investment decisions on particularly, over investment and low investment. The managers have different incentives to keep cash in firms. Product market competition is another powerful mechanism ensuring ...
Read More
The goal of this paper is to examine the association between product marketcompetition and corporate investment decisions on particularly, over investment and low investment. The managers have different incentives to keep cash in firms. Product market competition is another powerful mechanism ensuring that management does not waste resources. When competition exists, shareholders can observe performance in other firms and use this information as a benchmark to evaluate managers. The aim of this research is to investigate impact of product market competition and Interactive relationship between product market competition and free cash flow on over- investment and low- investment in free cash flow. The Herfindahl-Hirschman index was used as measures of competitiveness. The sample consisted of 110 companies listed in Tehran Stock Exchange from 10 different industries over the period 2010 to 2015. Research findings indicate that there is no significant positive relationship between Herfindahl- Hirschman with the low_ investment and over_ investment. The interactive effect of product market competition on a negative free cash flow has significant relationship with low investment.
Mohammad Hasan Gholizadeh; Ismael Ramazanpour; Mahsa Farkhondeh Farkhondeh
Abstract
Considering the important role of stock market in economic development, finding this fact that whether price increases is due to fundamental elements or not can help a country’s policy makers to direct the capital market to the right direction. Therefore, this study investigates the existence of ...
Read More
Considering the important role of stock market in economic development, finding this fact that whether price increases is due to fundamental elements or not can help a country’s policy makers to direct the capital market to the right direction. Therefore, this study investigates the existence of a certain type of rational bubbles due to the fundamental elements which called rational intrinsic bubble during 1385 to 1392. Then, in the second phase this matter will be examined that if the earnings can predict future return regarding to intrinsic bubbles so for this purpose Vector Auto Regression model has been applied. The required data have been collected seasonally and calculated by using and Rahavard Novin Software, 65 companies selected as research samples and data has been analyzed by using Eviews7 .the analyzing results indicate that there are intrinsic bubbles in 15 companies which is due to changing of fundamental elements such as dividend. Also the results indicate that in companies in which there is not any intrinsic bubbles, earning can predict future returns.
Abbas i Aflatooni
Abstract
Some valuation models use the accounting earnings and others use the cash flows as inputs to measure the intrinsic value of stocks. The empirical evidences show that the performance of earnings-based models is generally higher than that of non-earnings-based models. In addition, based on empirical evidences, ...
Read More
Some valuation models use the accounting earnings and others use the cash flows as inputs to measure the intrinsic value of stocks. The empirical evidences show that the performance of earnings-based models is generally higher than that of non-earnings-based models. In addition, based on empirical evidences, earnings management that is done using accruals and real activities manipulation; shift the earnings quality, and using the managed earnings in earnings-based valuation models lead to incorrect results. The first stage of this research that is done on 116 firms listed in Tehran Stock Exchange from 2003 to the end of 2013 compares the performance of Residual Income Model (RIM) and discounted cash flow model (DCF). The second stage compares the performance of mentioned models in suspected and non- suspected firms to earnings management and to control the effects of some variables on results, the regression analyses is applied. The research results show that, although in total sample the performance of RIM is higher than that of discounted DCF, the performance of RIM is significantly lower than that of DCF in suspected firms.
Abstract
Considering the important role of stock market in economic development, finding this fact that whether price increases is due to fundamental elements or not can help a country’s policy makers to direct the capital market to right direction.Therefore, this study investigates the existence of a certain ...
Read More
Considering the important role of stock market in economic development, finding this fact that whether price increases is due to fundamental elements or not can help a country’s policy makers to direct the capital market to right direction.Therefore, this study investigates the existence of a certain type of rational bubbles due to the fundamental elements which called rational intrinsic bubble during 1385 to 1392. Then in second phase this matter will be examine that if the earnings can predict future return regarding to intrinsic bubbles so for this purpose Vector Auto Regression model has been applied .Required data have been collected seasonally and calculated by using and Rahavard novin software, 65 companies selected as research samples and data has been analyzed by using Eviews7 .the analyzing results indicate that there are intrinsic bubbles in 15 companies which is due to changing of fundamental elements such as dividend. Also results indicate that in companies in which there is not any intrinsic bubbles,earning can predict future returns.
Abstract
Some valuation models use the accounting earnings and others use the cash flows as inputs to measure the intrinsic value of stocks. The empirical evidences show that the performance of earnings-based models is generally higher than that of non-earnings-based models. In addition, based on empirical evidences, ...
Read More
Some valuation models use the accounting earnings and others use the cash flows as inputs to measure the intrinsic value of stocks. The empirical evidences show that the performance of earnings-based models is generally higher than that of non-earnings-based models. In addition, based on empirical evidences, earnings management that is done using accruals and real activities manipulation; shift the earnings quality, and using the managed earnings in earnings-based valuation models lead to incorrect results. The first stage of this research that is done on 116 firms listed in Tehran Stock Exchange from 2003 to the end of 2013 compares the performance of Residual Income Model (RIM) and discounted cash flow model (DCF). The second stage compares the performance of mentioned models in suspected and non-suspected firms to earnings management and to control the effects of some variables on results, the regression analyses is applied. The research results show that, although in total sample the performance of RIM is higher than that of discounted DCF, the performance of RIM is significantly lower than that of DCF in suspected firms.
Seyed Kazem Ebrahimi; Ali Bahraminasab; Sedigheh Parvaneh
Abstract
The goal of this paper is to examine the association between product market competition and corporate investment decisions on, particularly over investment and low investment .The managers have different incentives to keep cash in firms. Product market competition is another powerful mechanism ensuring ...
Read More
The goal of this paper is to examine the association between product market competition and corporate investment decisions on, particularly over investment and low investment .The managers have different incentives to keep cash in firms. Product market competition is another powerful mechanism ensuring that management does not waste resources. When competition exists, shareholders can observe performance in other firms and use this information as a benchmark to evaluate managers. The aim of this research is to investigate impact of product market competition and Interactive relationship between product market competition and free cash flow on over- investment and low- investment in free cash flow. The Herfindahl-Hirschman index used as measures of competitiveness. The sample consisted of 110 companies listed in Tehran Stock Exchange from 10 different industries over the period 2010 to 2015. Research findings indicates that there is no significant positive relationship between Herfindahl-Hirschman with the low_ investment and over_ investment. The interactive effect of product market competition on a negative free cash flow is significant relationship with low investment .
hojat mohammadi; sajad naghdi
Abstract
This paper assesses the impact of a comprehensive set of macroeconomic factors (including changes in exchange rate, changes in inflation rate, changes in liquidity, changes in trade balance, and changes in gross domestic production) on error of management earnings forecast in companies annual reports. ...
Read More
This paper assesses the impact of a comprehensive set of macroeconomic factors (including changes in exchange rate, changes in inflation rate, changes in liquidity, changes in trade balance, and changes in gross domestic production) on error of management earnings forecast in companies annual reports. Detailed analysis of research related to earnings forecasting by managers and especially researches in Iran, indicates lack of adequate attention to the impact of the macroeconomic variables on earnings forecast error so this paper seeks to fill this research gapThe data set includes 80 companies listed on Tehran Stock Exchange (TSE) for the period of 1386 -1393. The study used Ordinary Least Squares (OLS) regression model to examine the relationship between above mentioned macroeconomic factors and management earnings forecast. The empirical results show that among the macroeconomic variables that have been examined, there are only significant positive relationships between two of above mentioned macroeconomic factors (including changes in exchange rate, and changes in gross domestic product) and management earnings forecast. We did not find any statistically significant association between other macroeconomic factors (including changes in inflation rate, liquidity, and trade balance) and management earnings forecast. The results suggest that macroeconomic variables can affect the accuracy of earnings forecasts by management, hence the neglecting of such factors can result increase in error of earnings forecasts.
Abstract
, in this research the effect of mentioned principle on the value of company has been investigated as a performance dimension among 117 initial released corporations during time interval of 2003-2013 in the Tehran stock exchange. In order to collect the data to conduct research, the software of Nevin ...
Read More
, in this research the effect of mentioned principle on the value of company has been investigated as a performance dimension among 117 initial released corporations during time interval of 2003-2013 in the Tehran stock exchange. In order to collect the data to conduct research, the software of Nevin Rehaward, audited financial statements and the hope letters of registered companies inserted in these sites of www.rdis.ir, www.tse.tmc and Kodal, and the SPSS software have been used to analyze the data. Finally, the research results indicate that opposite to the discussed theories, there is no significant relation between principle of corporate sovereignty including the establishing an audit committee, separating the role of managing director from the director of managing board and the size of managing board with the value (performance) of initial release company. It seems that, the competition in the environment of Tehran stock exchange is not in enough amount and the structure of audit committees have mainly problems that is under supervision of those managers and the authorities written in the charter of audit committees is practically inapplicable. This perspective should be investigated until more satisfaction could be achieved to the posed claims, and could help in the success of initial release companies especially for privatization of governmental corporations.
Abstract
This study has been implemented with the aim of the development of the researches in the scope of the management effects through investigation of the management ability on the investment decisions and the stock price crash risk. In this regard and in order to measure the managers ability and its related ...
Read More
This study has been implemented with the aim of the development of the researches in the scope of the management effects through investigation of the management ability on the investment decisions and the stock price crash risk. In this regard and in order to measure the managers ability and its related effects on the investment efficiency (in the form of three models) and also its interaction with the element of the reporting quality on the future stock price crash risk (in the form of two models), the Demorgian et al (2013) model has been used. Hence two different statistical samples from the Tehran stock exchange listed companies and with the implementation of the Systematic removal model have been used. Also in order to examine the hypotheses, estimation methods and the assumption of the model, the Panel analysis has been used. our findings show that the managerial talent decreases the underinvestment and reinforces the overinvestment and generally increases the deviation of the expected level of investment. In addition, the results of this study from one hand, show that the managerial talent, meaningfully, decreases the future stock price crash risk and from the other hand it shows that the desirable reporting quality, decreases the future stock price crash risk. But there is no evidence showing the existence of an interactive relationship between capable managers and high reporting quality with future stock price crash risk.
