Empirical Studies in Financial Accounting

Abstract In this research, the usefulness of balance sheet and income statement information have been considered in compare with income statement to explain stock returns of 104 sample companies which are accepted in Tehran security exchange since 1382 till 1390. The investors consider future value of stock returns at the time of investment in companies share. This research, tried to help the investors to choose a best finance and investment chance. The data utilized to test the research assumptions are generally compound data. To test the research assumptions, multi variable regressions have been applied. The descriptive and perceptive statistical methods, including adjusted multiple, are applied.
The result of this research indicated more ability and profitability of stock return at the time of using information in the model of balance sheet and income statement together in compare with only income statement usage. Specially in Loss versus profit companies and Young versus mature companies or with Firms with uncertain future earnings

Abstract In this research, the usefulness of balance sheet and income statement information have been considered in compare with income statement to explain stock returns of 104 sample companies which are accepted in Tehran security exchange since 1382 till 1390. The investors consider future value of stock returns at the time of investment in companies share. This research, tried to help the investors to choose a best finance and investment chance. The data utilized to test the research assumptions are generally compound data. To test the research assumptions, multi variable regressions have been applied. The descriptive and perceptive statistical methods, including adjusted multiple, are applied.
The result of this research indicated more ability and profitability of stock return at the time of using information in the model of balance sheet and income statement together in compare with only income statement usage. Specially in Loss versus profit companies and Young versus mature companies or with Firms with uncertain future earnings

Abstract One important aspect of accounting research in different countries is
acquiring knowledge about situation of accounting systems and finding
weaknesses and gaps, providing solutions to resolve existing deficiencies,
and upgrading to higher levels. According to the four steps of the evolution
steps of management accounting, the higher the steps, tools of cost
management becomes more advanced and reasonably the effect on operating
profit more, in this study, examine effect of tools and techniques of
management accounting in evolution step of management accounting form
on operating profit. Statistical population of the study is financial
management companies by the end of 1392 (In Solar Calendar) In Tehran
Stock Exchange is accepted. Data is collected by questionnaire. The results
show that if evolution step of management accounting firms goes up,
operating profit will goes up too, in the meanwhile, there is a exception, that
is companies are in the step two have higher operating profit than companies
which are in the steps third and fourth of evolution of management
accounting.

Abstract The purpose of this research is to examine the relationship between the
corporate governance characteristics and accounting restatements due to
rapid growth of restatements in the world as well as the Iranian capital
market. Researchers believe that restatement is a sign of low quality of
financial reporting by the companies. For doing so, similar to prior studies
and by consideration of the Iranian context a set of different corporate
governance characteristics including power of CEO, CEO changes, block
holders, largest shareholder, auditor type, auditor industry specialization,
auditor changes, and finally capital structure are considered. In addition, to
control the possible effects of other factors, which could potentially affect
firms'''' restatement decisions, 10 new variables were added to the model.
These control variables include return on assets, sales growth, operating cash
flow, liquidity ratio, prior year performance, equity financing, debt
financing, firm size, year, and industry type. The final research sample
includes 999 observations of the Tehran Stock Exchange (TSE) listed
companies for the period 2004-2009. The results indicate that CEO changes,
auditor changes, auditor industry specialization, auditor size and largest
shareholder as well as some financial characteristics such as operating cash
flows ratio, liquidity ratio, and firm size are associated with the restatements
of the accounting income. Therefore, the findings support the hypothesis that
corporate governance mechanisms can improve the quality of financial
reporting.

Abstract The purpose of study is to investigate comparative ability of accounting
information to predict indices volatility of companies listed in Tehran Stock
Exchange using intelligent methods including Support Vector Machine,
Artificial Neural Network and classic Logistic Regression model. Sample of
study includes 91 companies listed in Tehran Stock Exchange that have been
classified in 9 industrious groups during time period of 2003-3013.
Considering 11 corporate financial variables, study results show that despite
predicting ability of around 60% by Support Vector Machine and Artificial
Neural Network, there is significant difference between actual and predicted
results. Classic Logistic Regression model also can explain only 4%
industries’ indices volatility using selected 11 corporate financial variables.
Finally, although intelligent methods are superior to classic methods,
accounting information solely are not well-explainer variables for predicting
industry index volatility and variety of variables such as financial, political,
economical are effective in predicting industry index volatility.

Abstract The novelty and mandatory rules about establishing of the audit
committee in Iranian listed companies as one of the important part of
corporate governance are controversial subject. It has been important
especially when the real earnings management is involved. It is due to the
possibility of the detection of real earning management that is low in
comparison with accrual earning management. In companies this research
intend to investigate about audit committee characteristic and real earning
management in Iranian listed companies. So we gather data about 112 listed
companies of TSE during 1392 year and analysis them with cross-sectional
regression.
In general our findings show that there is a significant relationship
between audit committee characteristics and real earnings management. Also
our findings help to TSE policy maker for reporting and enforcement of
audit committee charter. It indicates also that there is a vital need for
applying of corporate governance rules in Iranian listed companies

Abstract The purpose of the study is to investigate comparative ability of accounting information to predict indices volatility of companies listed in Tehran Stock Exchange using intelligent methods including Support Vector Machine, Artificial Neural Network and classic Logistic Regression model. Sample of study includes 91 companies listed in Tehran Stock Exchange which have been classified in 9 industry group during time period of 2003-3013. Considering 11 corporate financial variables, study results show that despite predicting ability of around 60% by Support Vector Machine and Artificial Neural Network, there is significant difference between actual and predicted results. Also, classic Logistic Regression model can explain only 4% industries’ indices volatility using selected 11 corporate financial variables. Finally, although intelligent methods are superior to classic methods, accounting information solely aren’t well-explainer variables for predicting industry index volatility and variety of variables such as financial, political, economical … are effective in predicting industry index volatility.

Abstract One important aspect of accounting research in different countries is acquiring knowledge about situation of accounting systems and finding weaknesses and gaps, providing solutions to resolve existing deficiencies, and upgrading to higher levels. According To The Four Steps Of The Evolution Steps Of Management Accounting, The Higher The Steps, Tools Of Cost Management Becomes More Advanced And Reasonably The Effect On Operating Profit More, In This study, examine Effect of tools and techniques of Management Accounting in evolution step of management accounting form on operating Profit. Statistical Population of the Study Is Financial Management Companies by the End of 1392 (In Solar Calendar) In Tehran Stock Exchange Is Accepted. Data Is Collected By Questionnaire. The results show that if evolution step of management accounting firms goes up, operating profit will goes up too, in the meanwhile, there is a exception, that is Companies are in the step two have higher operating profit than companies which are in the steps third and fourth of evolution of management accounting.

Abstract The company's ability to identify potential funding sources both internal and external, are the main factors of growth and development. The main objective of companies is to maximize shareholder wealth and the company's capital structure is one of the factors contributing to this, that involve financial resources commensurate with the risk and return.
On the other hand, several studies have shown that due to the problems of the traditional theory of capital structure, one of the most important factors, affecting the issues of financing in companies, is financial flexibility. This study examines the impact of financial flexibility on capital structure decisions. For this purpose, the companies listed in Tehran Stock Exchange, 108companies were selected and financial data for the years 1382 to 1392 were studied. The results indicate that current period financial flexibility has a significant and positive relationship with capital structure. The results also suggest that for companies that have negative marginal value of cash, financial flexibility in capital structure decisions, is a priority.